TaxTMI 
TaxTMI 
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.
Applicability of Section 194C of I T act 1961
Sharad Aggarwal
Contractor not required to deduct TDS on transport charges if transporter provides PAN, per Section 194C(6) of IT Act. A contractor engaged by a company for transporting goods, with gross receipts exceeding the audit limit under Section 44AB of the Income Tax Act, 1961, inquired about the obligation to deduct tax at source on transportation charges paid to truck owners. The response clarified that currently, there is no requirement for Tax Deducted at Source (TDS) on transportation charges if the transporter provides a Permanent Account Number (PAN), referencing Section 194C subsection 6 of the Income Tax Act, 1961. (AI Summary)