Carriage of goods and passengers by any mode other than railways is liable to TDS deduction under section 194C. As finance minister Nirmala Sitharaman today announced the package to fight against adverse situation, aimed at all sections of the society, including the middle-class, SMEs, we will describe here the implications on Transport and Goods Carrier.
From 14th May, 2020 onwards till 31st March, 2021 the TDS and TCS rates are reduced by 25%, The TDS reduction will infuse liquidity of ₹50,000 crore Finance Minister said.
Rate of Tax under Section 194C for Goods Transporters
The tax shall be deducted at these rates without including the surcharge, education cess and secondary and higher education cess. However, if PAN of recipient is not available, then tax shall be deducted at the rate of 20%(now 15%) in accordance with the provisions of Section 206AA
When is TDS under Section 194C not applicable?
Tax is not required to be deducted in the following cases:
There is nothing our clients have to do, We will update the rates of TDS in Fleetable Operations from 14th May, 2020 onwards.
Source – Taxman
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