TDS of Prior period

[chaganti srinivas]

Dear Sirs, As per the latest Income tax circular, TDS from transporter is nil from 01.10.2009. If the service rendered by transporter is prior to 01.10.2009 and submits the bill after 01.10.2009, is TDS Deductable ? - Please clarify.

[DEV KUMAR KOTHARI]

See sub-sections (1) and (6) and (7) of section 194C as substituted w.e.f. 01.10.2009. The date of credit or payment which ever is earlier is relevant for TDS. Date of submission of bill is not relevant, in case you have provided liability or paid some advance earlier. In case a/c of party is credited on or after 01.10.09, new provision will apply. In case any payment ws made or partys a/c was credited before 01.10.09, then the old rate will apply. Before not doing deduction, you must obtain valid PAN of party and file details / form to the concerned authority in a form which is yet to be prescribed.

[Surender Gupta]

The views of Mr. Kothari are laudable. All depend on the date the amount is credited in the books of account or the date on which the payment is made.

AI Summary

TDS Applicability: Payments to Transporters Before Oct 1, 2009, Fall Under Old Rate Per Amended Section 194C A query was raised about the applicability of Tax Deducted at Source (TDS) on payments to transporters for services rendered before October 1, 2009, but billed after this date. The first response clarified that according to the amended Section 194C, the relevant date for TDS is when the payment is credited or made, not when the bill is submitted. If credited or paid before October 1, 2009, the old rate applies; otherwise, the new provision applies. The second response agreed with this interpretation, emphasizing the importance of the credit or payment date.