194 C limit for Transporter

[Mathurthi RamKumar]

Dear All,

Greetings of the day. Kindly guide about TDS deduction for Transporter vide sec 194C. If transporter not having 10 vehicle but submitting bills for 10 lacs above, As per declaration TDS not applicable or as per IT TDS applicable?

Kindly guide me. Its very urgent.

Regards

M.RamKumar

[Ganeshan Kalyani]

Sir, a transporter who does not own more than 10 vehicles are not required to subjected to TDS. The transporter may arrange vehicle from third party and supply to the customer for transportation purpose. This will not disqualify him from the benefit of the aforesaid provision. Only if the transporter does not fulfill the said condition TDS shall be deductible. Thanks.

AI Summary

TDS on transport services: not required where transporter has limited vehicle ownership even if third party vehicles are used.
TDS applicability under section 194C turns on transporter vehicle ownership: a person who does not own more than ten goods carriages is not subject to TDS, and arranging vehicles from third parties does not disqualify the transporter from that ownership-based treatment; if the transporter fails the ownership threshold, TDS must be deducted.