Applicability of Section 194C of I T act 1961, Income Tax

[Sharad Aggarwal]

A Contractor taking contract from A Company for transpartation of Certain quantity of Goods and material. Gross Receipts of the Contractor is above than audit Limit U/s 44AB of Income Tax Act, 1961. This contractor hiring some trucks and got the Goods Transported and hiring charges paid per trip Basis. Querry :- Whether the said Contractor liable to deduct Tax at source from Hire/Transportation Charges paid to truck Owners.Please give your veiws with case Laws, circulars and notifications.

Posts / Replies

[CA Rachit Agarwal]

Presently there is no TDS on Transportation charges provided the transporter furnishes the PAN.

Refer Section 194C subsection 6 of IT Act, 1961.