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 Not Required Under Section 194C for Transporters Owning 10 or Fewer Vehicles, Even with Third-Party Arrangements. A query was raised regarding the applicability of TDS under section 194C for a transporter submitting bills exceeding 10 lakhs but not owning more than 10 vehicles. The response clarified that TDS is not required if the transporter does not own more than 10 vehicles, even if they arrange additional vehicles from third parties. The transporter remains eligible for the benefit of the provision unless the condition of owning more than 10 vehicles is met, in which case TDS would be applicable.