TDS on Transport Contractors U/s 194C is removed w.e.f. 01/10/2009 on furnishing the PAN details of the payee. my querry is who is Transport contractor? one who is in the business of plying, hiring or leasing goods carriages. who is registered as Transport Contractor. what about the company who incurs freight expenses & recovers not as a reimbursement but by way of separately raising FREIGHT INVOICES. their main business is not of transport contractors. they may or may not sell their own material to the same party to whom freight is invoiced. in addition to above if company also raises separate invoice for C & F charges alongwith Service tax, then does claring & forwarding activities form part of Transport Contract eligible for exemption from TDS u/s 194C? pl. discuss.
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For the purpose of exclusion from TDS the provisions are as follows: "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." - It is clear that in the exclusion clause the term "transport contract" has not been used. Specific services are excluded from the scope of TDS.