Applicability of Section 194C of I T act 1961

[Sharad Aggarwal]

A Contractor taking contract from A Company for transpartation of Certain quantity of Goods and material. Gross Receipts of the Contractor is above than audit Limit U/s 44AB of Income Tax Act, 1961. This contractor hiring some trucks and got the Goods Transported and hiring charges paid per trip Basis. Querry :- Whether the said Contractor liable to deduct Tax at source from Hire/Transportation Charges paid to truck Owners.Please give your veiws with case Laws, circulars and notifications.

[CA Rachit Agarwal]

Presently there is no TDS on Transportation charges provided the transporter furnishes the PAN.

Refer Section 194C subsection 6 of IT Act, 1961.

AI Summary

TDS on transportation charges: no deduction required where transporter furnishes PAN under section 194C(6). No TDS is required on transportation/hire charges paid to transporters where the transporter furnishes a PAN, as indicated under subsection (6) of section 194C; therefore a contractor engaging truck owners who provide PAN need not deduct tax at source on such payments.