February 17, 2016

TDS Declaration from Transporter for Section 194C

Before 2015, Tax was not deductible on payments to transporter if he/she has PAN. The only responsibility was to obtain such PAN number. And thus transporter had relaxation from TDS deduction on their business receipts. Now, pursuant to amendment in Finance Act 2015, this relaxation is limited to a particular class of transporters. Only small transporters, i.e. those who own less than 10 vehicles in the given year are eligible for the relaxation. And the payer is responsible to obtain a TDS declaration from such transporter.






Please note, the CBDT has not notified any specific format for such declaration. A sample format is given below. Wherever the transporter communicates that his TDS should not be deducted because he is a small transporter, following declaration should be obtained form him.