May 272015

TDS deductible on payment to transporter owing more than 10 carriages

You may be aware that hitherto (upto 31.05.2015) no TDS was require to be done from Transport charges paid/ payable if the transporter  furnishes the copy of PAN.

However, as per the amendment effective from 01.06.2015, this exemption will be available only to those transporters who own ten or less goods carriages at any time during the previous year. If any transporter more than 10 carriages then TDS require to be deducted u/s. 194C(6) @1% when :

a) An individual payment to such a transporter is Rs. 30,000/- or more


b) The total payments to such a transporter during any Financial year is Rs. 75,000/- or more.
Now, a declaration required to be obtain from every transporter stating that he does not own 10 or more carriages.
A draft of the declaration can be downloaded from the following link

Please note that failure to obtain such a declaration  will result in to contravention of Sec. 194C (6) of the Income Tax Act, 1961.

Courtesy: CA C. Maneklal