TDS DEDUCTION ON TRANSPORTER BILL

[Rajiv Sinha]

Dear Sir

 

Pls help me regarding tax deduction on transporter bill in following condition.

 

1) contract with transporter -transport goods by Road.

2) Contract with transporter-transport goods by Air.-delivery to our site-all formaility done by transporter(goods lifted from party and sent to us by air and from air port to our factory by road) and every thing he is charged in his bill.

3)Contract with transporter-transport goods by Train.-delivery to our site-all formaility done by transporter(goods lifted from party and sent to us by Train and from Railway goods yard to our factory by road) and every thing he is charged in his bill.

 

Pls help me and explain  Tds applicability on the all above condition.

 

Rajiv Sinha

 

09811966217

[SANTHANA KRISHNAN]

 Sir

1) Road - This is covered under GTA – (Goods Transport Agency)-Termed as Transport booking agents.  – Service tax payable is 25%  i.e 2.5% plus 3% of gross amount charged.  If he is having PAN No & Service Tax No. regn. He is exempted from TDS.  -  Service tax is paid by service receiver not transport agency.

2) AIR  - Service Tax – 10.30% on total freight  - Service tax is paid by Transport agency.(Claimed in the bill itself)

3)Train  - Same as Pt# 2.

1. One more point – For Air & Train we gave the rate as Air mvt/Train mvt., not partially for air/train & partially for road.  So this is treated as Air/Train only.

from Mr.Jesudoss

TAFE

 

AI Summary

TDS on transport services: registered goods transport agencies exempt; air and rail freight involve service tax and TDS considerations. TDS on transporter bills depends on mode of transport and transporter registration: road carriage by a registered Goods Transport Agency is treated as GTA and exempt from TDS with service tax borne by the receiver; air and rail carriage are treated as air/train movements with service tax shown in the bill and treated as air/rail services rather than partly road, affecting TDS applicability where PAN and service-tax registration are absent.