Declaration for non deduction of TDS on transporters

As per the provisions of section 194 C of Income Tax Act, 1961now business entities are required to deduct TDS on payment of made to contractor during the course of plying, hiring and leasing goods carriage from transport operator owning more than 10 goods carriage. Therefore, TDS is not required to be deducted for payment made to operators owning 10 or less than 10 goods carriage. Business entities are not required to manually check the number of goods carriage to determine the exemption rather they are required to obtain declaration from transporter along with PAN copy.

Sample format of declaration is as follows-

  

To                                                                                                        Date:

 (Name of the entity)

(Address)

Sub: Declaration for Non- deduction of Tax at Source (TDS) under Section 194 C (6) of           the Income tax Act, 1961

This is to certify that:

1.                                            (complete name of the Transport Vendor entity) is a                    (state the form of the entity, like a company, partnership firm, sole proprietor, etc)

2. The Permanent Account Number of                (complete name of the Transport Vendor                      (mention PAN of the Transport Vendor entity).  A self- attested photocopy of the same is attached hereto with this Declaration.

3.                                         (complete name of the Transport Vendor) is engaged in the business of plying, hiring or leasing of goods carriage for its business.

4.                                           (complete name of the Transport Vendor entity) does not own (whether Registered or as Beneficial Owner) more than ten goods carriage as on date.

5.      If the number of goods carriages owned (whether registered or as beneficial owner) by_____________ (complete name of the Transport Vendor) exceeds ten at any time during the Financial Year 2015-16, then _____________ (complete name of the Transport Vendor) undertake to intimate you forthwith in writing of this fact.

6.      In the event of any default, _____________ (name of the Transport Vendor) undertakes to indemnify you for any costs, taxes, expenses and any other liability that may arise upon you.

I, ___________________________ (name of the person signing the declaration), _____________ (designation of the person signing this declaration, like a Director, Partner, Sole Proprietor, Authorized Signatory, etc), acting for and on behalf of _________________ (complete name of the Transport Vendor entity), do hereby make the above declaration as required under sub-section (6) of Section 194C of Income Tax Act 1961 for receiving payments from your company without deduction of tax at source (TDS).  The above points of the Declaration as stated are true and correct to my knowledge and belief and no part of it is false and nothing material has been concealed in it.

_____________________

(Name and Designation of the person giving Declaration)

Date:

Place:

CA Mahershi Vijay
CA, CS, B.com