Exemption from TDS u/s 194c

[ASHISH DESAI]

TDS on Transport Contractors U/s 194C is removed w.e.f. 01/10/2009 on furnishing the PAN details of the payee. my querry is who is Transport contractor? one who is in the business of plying, hiring or leasing goods carriages. who is registered as Transport Contractor. what about the company who incurs freight expenses & recovers not as a reimbursement but by way of separately raising FREIGHT INVOICES. their main business is not of transport contractors. they may or may not sell their own material to the same party to whom freight is invoiced. in addition to above if company also raises separate invoice for C & F charges alongwith Service tax, then does claring & forwarding activities form part of Transport Contract eligible for exemption from TDS u/s 194C? pl. discuss.

AI Summary

Exemption from TDS under Section 194C: Clarification on Transport Contractor Definition and Freight Invoices Eligibility A discussion in a forum addresses the exemption from TDS under Section 194C of the Income Tax Act, effective from October 1, 2009. The query raises questions about the definition of a transport contractor and whether companies that issue separate freight invoices, but whose primary business is not transportation, qualify for this exemption. It also questions whether clearing and forwarding charges are part of the transport contract eligible for exemption. The response clarifies that no TDS deduction is required for payments to contractors involved in plying, hiring, or leasing goods carriages, provided they furnish their PAN, but does not explicitly mention 'transport contract' in the exclusion.