Position up to 31.05.2015
On transport contracts, if payment is made or the liability to pay has arisen on or before 31.05.2015, as the case may be, the payer is not liable to deduct tax at source, provided the transport contractor has furnished his PAN to the payer. (i.e. No TDS if transport contractor furnished his pan (irrespective of the size of the transport contractor))
Position on or after 01.06.2015
1. The amended provisions apply for payments made or liability to pay reckoned on or after 01.06.2015, as the case may be, in respect of transport contracts of the nature mentioned below;
2. The payer may be engaged in the business of transport or otherwise (this is clarified by the Memorandum explaining the Finance Bill 2015) (i.e. the payer may be engaged in any business);
3. Conditions vis-à-vis the recipient (i.e. the transport contractor)
a. The recipient shall be engaged in the business of plying, hiring or leasing goods carriages (and)
b. The recipient shall not own more than 10 goods carriages at any time during the financial year (and)
c. The recipient shall furnish to the payer a declaration to the above effect and along with copy of his / itsPAN
4. Conditions vis-à-vis payer (i.e. S. 194C(7) which is not amended)
The payer shall inform the Income Tax Authority the prescribed particulars in the prescribed manner about the matters dealt with in paragraph 3 above
5. What are the forms prescribed
For declaration from recipient | No form is prescribed yet. However it is advisable that declaration may be obtained in the format of erstwhile form 15 - I with suitable modifications. Form 15 I is enclosed for ready reference. |
For furnishing of information by payer | Here also no format is prescribed. The options are as under : 1. Compile information in the format of erstwhile Form 15 – J, with suitable modifications, and produce the details when called for by the assessing officer. Form 15 – J is enclosed for ready reference 2. Furnish the particulars on a quarterly basis in Form No. 26Q (i.e. disclose as amount paid and no TDS done). On processing of 26Q, this sometimes can result in demands raised by TRACES . |
CA..THOMAS K.GEORGE
MANAGING PARTNER,
THOMAS & ASSOCIATES,
CHARTERED ACCOUNTANTS,C
MOOLAIPARAMBIL ATM CHAMBERS,
OPP.RMS, RAILWAY STATION ROAD,
KOTTAYAM-686001
PHONE : 04812300496
MOB :919447773937
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