What does the sub section 6 of section 194C of the income-tax Act, 1961 imply? I have a situation …
What does the sub section 6 of section 194C of the income-tax Act, 1961 imply?
I have a situation in which the contractor of the goods is not the owner of trucks, i.e. the transport agency does not own any trucks but hire trucks from owners who own not more than 2 trucks. Is the consignee still liable to deduct TDS for the transport agency?
Hello Punk... Welcome to Thakurani. I am Chiranjibi and I am more than happy to answer your query.
Section 194C deals with the deduction of TDS from the payment to be made to resident contractors from the amount of invoice raised by them with the rates 1% ( for individuals and HUF) and 2%( for others).
Exception is allowed in case of a person who owns more than 10 goods carriages (trucks) and declares as such by furnishing his PAN. In your case, it is clear that the transport agency doesnt own any trucks. So, this section shall be applicable to him and TDS should be deducted on such amount paid to him.
..........Chiranjibi Chapagain..........
