New User / Register | Bookmarks | Annual Subscription | Feedback |
Login: Stay
| Forget Password |
           
TMI - Tax Management India. Com  

Recent Discussionss:

Excise Registration Amendment Eligiblity for SSI Exemptiom. CENVAT Credit on Packing materials Empty Barrels Purchase Interest payment month wise Applicability of Gratuity for Contract Employees Tariff item for finished goods and part thereof VAT Assessment by SIT Excise registration Input Service Distribution (ISD)
 
Discussions Forum
Home Forum Income Tax Month 7 2011 2011 (7) This
← Previous Next →
 

TDS under Section 194C - Income Tax

 
Issue Id: - 3158
Dated: -08-07-2011
By:- Dhananjay Patil
TDS under Section 194C

Dear All

This is regarding the TDS provisions of the  Income Tax Act, 1961. (Pl. Ref Section 194C).
Our client is a sugar factory, there are number of individual transporters (individual truck owners) as well as transport companies for the carriage of sugar cane from the farmers place to the factory. They all have provided the Permanent Account Number(PAN)with factory.

Till the financial Year 2010-2011 these truck owners use to apply for the lower deduction, and accordingly there was no deduction of tax.

Now as per the new amendments [Section 194C] we are thinking that not to deduct any tax from the payments made to the transporters, as the amended sub section 6 of 194C provides that:
"No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum."

Now my doubt is that

1) whether the factory can treat these transporters as person eligible under this sub section 6 of 194C.

2)Whether the factory can, after obtaining the PAN from all these transporters take the decision to not to deduct the tax?

3)whether the above contract to carry the sugar cane from farmers place to factory will be the contract during the course of business of plying, hiring or leasing goods carriages?

Thanks in Advance

Post Reply
 
Previous Posts
 


Dated: - 11-07-2011
By: - Mohammed Lakkadsha

Yes , No deduction is required when PAN are provided by the transporters. it will constured as contract as contemplated in Sec 194(6). Moreover the company has to file ETDS returns providing information as regards all such payments to transporters wherein NO TDS has been done as Transporter has provided PAN. - CA.Mohammed Lakkadsha


 
 
Previous Next

 

what is new what is new

UpdatesKnowledge SharingSubscription CommunicationNewslettersMore Options




Go to Mobile Website Go To Top
© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.