Please Help: TDS on transporters

Posted Date : 26-Apr-2012 , 03:28:46 pm | Posted By vishal agarwal

Respected sir,

There is a problem in arriving at the conclusion of section 194C(6).
As per section 194C(6) any amount paid or credited to a contractor involved in the business of PLYING,HIRING OR LEASING GOODS CARRIAGES are not liable for TDS deduction.The problem is :

1)The words PLYING,HIRING OR LEASING are not defined.

2)Whether the exemption is available for plying,hiring or leasing of WHOLE TRUCK OF A TRANSPORTER OR availing service of a contractor where he comes pick up goods in already loaded truck & gives a door to door transportation services like a courier.

I would be highly & greatly obliged if you clarify the above problem.
Regards
Vishal Agarwal
+91 92 892 19 136
e-mail: vishalagarwal1991@gmail.com

Category : Income Tax | Answers : 3 | Comments : 1 | Hits : 2564

Answers

Answer By: CA VIPIN GARG

Dear Vishal, As per my experience and knowledge, the exemption will be available to all types of transportation of goods i.e. whether you hire the full truck or part of the truck as you have mentioned above because in both the cases the contractor will be assumed to be the transporter. but if you provide the loaded truck and then contract with somebody to just transfer them at various location then that will not at all amounts to be a transporter, that will be as good as the contract for transferring of goods at various location and not transportation.

Hope you got the answer you were looking for, have a nice day..........

Answer By: Rishabh Upadhyay

Exemption is with regards to a transporter, it does not matter wheather u hire full truck or a already loaded truck. Contract with a courier company does not fall in transporter category.

Answer By: Rishabh Upadhyay

Exemption is with regards to a transporter, it does not matter wheather u hire full truck or a already loaded truck. Contract with a courier company does not fall in transporter category.