TDS on Payment to Transporters (Indulging in Plying, Hiring & Leasing of Goods Carriage) for Financial Year 2016-17 (Sec.194 C)

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Provisions of Income Tax Act, 1961 with regard to TDS on payments to Transporters under Section 194 C are as follows:

  • If single payment to any transporter is less than Rs.30000 and total payment in financial year 2016-17 is less than Rs.1,00,000 = No TDS
  • If Transporter has 10 or less than 10 goods carriage at any time during financial year 2016-17-
  1. Provides PAN No. + Declaration to the effect that he has 10 or less than 10 goods carriage = No TDS
  2. If Transporter does not provide PAN No. = TDS 20%
  3. If transporters provides PAN No. but does not provide declaration = TDS 1% or 2% (Based on residential status of transporters: If individual or HUF = 1% and in all other cases = 2%)
  • If transporter has more than 10 goods carriages at any time during the Financial Year 2016-17
  1. If he does not provide PAN No. = TDS @ 20%
  2. Is he provides PAN No. = TDS @ 1% or 2% (Based on residential status of transporter: If individual or HUF than 1% and in any other case = 2%)

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