Applicability of tds

[d.v. gupta]

WE ARE PVT LTD COMPANY. WE WERE PAYING FREIGHT TO TRANSPORTER AND DEDUCTING TDS FROM THEM UP TO 30-09-2009.AS PER RECENT AMENDMENT IN SEC 194C TDS IS NOT DEDUCTIBLE .MY QUESTION IS THAT AS PER SUB SECTON 6 OF SECTION 194C ' NO DEDUCTION SHALL BE MADE FROM ANY SUM CREDITED OR LIKELY TO CREDITED OR PAID DURING THE PREVIOUS YEAR TO THE ACCOUNT OF A CONTRACTOR DURING THE COURSE OF BUSINESS OF PLAYING, HIRING OR LEASING GOODS CARRIGES.' THEN WHETHER THE SEC APPLIES TO US OR ON TRANSPOTER ONLY. WE SHOULD DEDUCT TDS OR NOT.

[Rama Krishana]

Substituted provision is effective from 01.10.2009 only. Therefore before 01.10.2009, the provisions of section 194C before amendment are applicable. Similar query has been well answered by Mr. Dev Kumar Kothari with reference to your issue id = 1585

AI Summary

TDS applicability under Section 194C: amendment effective October 2009, prior provisions govern earlier payments for transporters. Company paid freight to transporters and deducted TDS up to 30-09-2009. The substituted provision of section 194C excluding deduction for sums paid to contractors in the business of plying, hiring or leasing goods carriages is effective from 01.10.2009 only; therefore payments and TDS obligations before that date remain governed by the pre-amendment provisions.