Huge amount of payment is made regularly by business to transporters. Due to huge payment there are chances of mistakes. Non deduction of TDS u/s 194C on payment to transporter attracts 30% dis allowance of the expense and attracts other penalties and interest.Earlier there was provision that where transporter owned less than two goods carriage TDS was not deductible,after that TDS was not applicable if PAN is provided by the person carrying business of goods carriage. New provisions are enacted to exempt small taxpayers transporter from TDS compliance.
TDS u/s 194C on payment to transporter
- If transporter who is contractor engaged in the business of the hiring,plying or leasing goods furnishes declaration that he owns less than 10 goods carriage at any time during previous year TDS u/s 194C on payment to transporter not applicable whether by transporter or any business.If transporter who is contractor engaged in the business of the hiring,plying or leasing goods furnishes declaration that he own more than 10 goods carriage at any time during previous TDS is applicable at 2% on other than individual and at 1% on individual if person furnishes PAN on payment made whether by transporter or any business.
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