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

Clarification on TDS Applicability for Freight Payments Under Amended Section 194C Effective from 01.10.2009 A private limited company inquired about the applicability of TDS under the amended Section 194C, specifically whether they should continue deducting TDS on freight payments to transporters after 30-09-2009. The amendment states that no deduction is required for sums paid to contractors for playing, hiring, or leasing goods carriages. A respondent clarified that the amended provision is effective from 01.10.2009 onward, implying that before this date, the previous provisions of Section 194C applied. The query was previously addressed by another expert, referencing issue ID 1585.