TDS on Transporter w.e.f 01.06.2015
TDS ON TRANSPORTER Earlier Provision The earlier provision (upto May 31, 2015) provides that no deduction of tax is required from payments made to the contractor during the course of plying, hiring and leasing goods carriage if the contractor furnishes his PAN to the payer. New Provision effective June 1, 2015 The new provision of Section 194C, as was informed earlier at the time of the Union Budget, restricts the cases for non-deduction of tax. Non deduction of tax will be available only for small transport operators owning not more than 10 goods carriages. Analysis: If transporter is not owning more than 10 goods carriage at any time during the previous year, then we, as payers (Tax deductor’s) have to obtain a declaration from transporter along with his copy of PAN before credit or payment to transporter, whichever is earlier. If the transporter is owning more than 10 goods carriage at any time during the year, then we, as payers are l...