Rate of TDS

1% for Individual/HUF

2% for Other Deductees

 

Cut off

It is 30000 for Single payment and 75000 100000 (New Amendment from 1-6-2016)
  for Annual Payment

 

Types of Deductors Covered

This section is applicable to all types of deductees

However, it is not applicable in following cases

  1. If it is for business use of Individual/HUF but their total sales/turnover does not exceeds ` 100 lakh(25 lakhs in case of professions) in previous year
  2. If it is for personal use of Individual /HUF

 

 

TDS on Goods Transport Charges (Freight Charges)

If Pan number Not Provided-20% tds

If Pan number Provided  and Number of Trucks upto 10-No TDS

If Pan number Provided  and Number of Trucks more than 10-TDS @ 1%

 

Hence,NO TDS under 194C only if person

  • is engaged in the business of plying, hiring or leasing goods carriages
  • owns ten or less goods carriages at any time during the previous year
  • has furnished a declaration to this effect along with his PAN

 

Meaning of Goods Carriages

Goods carriage means -

(i) any motor vehicle constructed or adapted for use solely for the carriage of goods; or

(ii) any motor vehicle not so constructed or adapted, when used for the carriage of goods.

 

The term motor vehicle‖ does not include

  1. vehicles having less than four wheels and with engine capacity not exceeding 25cc as well as v
  2. vehicles running on rails or
  3. vehicles adapted for use in a factory or in enclosed premises.

 

Professional and Technical Services not covered in 194C like

lawyers, physicians, surgeons, engineers, accountants, architects, consultants etc

 

 

 

Section does not apply to contract for Sale of Goods

No TDS on Gas Transportation charges paid by purchaser of natural gas to seler of natural gas

As it is mainly acontract for sale‘ and not a ‗works contract‘

  1. Income Tax
  2. Tax Deducted at Source (TDS)
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.