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if payment made to a transporter then limit of 30000/75000 u/s 194c applies or not

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 NEELKAMAL asked almost 3 years ago

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

As per Sec. 194C(6) of income tax act. No deduction shall be made from any sum credited or paid or likely to be credited or paid during 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. As per Sec. Sec. 194C(7) of income tax act. The person responsible for paying or crediting any sum to the person referred to in Sec. 194C(6) shall furnish, to the prescribed income-tax authority or the person authorised by it, such particulars, in such form and within such time as may be prescribed.

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered almost 3 years ago

> Provisions for payments and tax deducted at source to transporters As per Sec. **194C(6)** of income tax act. No deduction shall be made from any sum credited or paid or likely to be credited or paid during 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. As per Sec. Sec. **194C(7)** of income tax act. The person responsible for paying or crediting any sum to the person referred to in Sec. 194C(6) shall furnish, to the prescribed income-tax authority or the person authorised by it, such particulars, in such form and within such time as may be prescribed. **Conclusion** the nil rate will be applicable if the transporter quotes his PAN. The rate of TDS will be 20% in all the above cases, if PAN is not quoted by the deductee. **Case Law** Payments made by assessee to transporters providing vehicles and driver to pick and drop employees is liable to TDS under section 1 94C and not section 194-I. Bharat Electronics Ltd. v. Dy. CIT (TDS), [2012] 50 SOT 172 (ITAT-Delhi) Regards, Arjun Pratap Singh

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