TDS on Lorry Hire Charges - Professionals - Taxation - TIK Share
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TDS on Lorry Hire Charges



Section 194C will Attract TDS on Lorry Hire charges, Freight etc. Exclusing Sec. 44AE.

My Concern is about Big Roadlines Company.

It will be very difficult for them to manage, Because so many people paying Freight charges and they will deduct TDS in Many Number of Branches BUT when they do not remmit or Make payment of TDS or Do not Link in TDS Return then it will be loss for them and Transport Business may incurr loss of 1 or 2% from many Clients.

Do you think is it correct as in Budget they brought change.

Instead of it they might have Brought No filing of TDS Return, Just make TDS payment like How TDS on Property is paid and such wise making work easy and getting correct TDS credit etc...  

Rahul Rai


Your thinking of treating tax on transportation similar to property purchase is questionable. First, how do you make sure that tax is paid.

Suppose, i take service of some transport company and TDS is only 100Rs. I do not think that department will look for 100Rs. as administration cost would be more than tax collection.

But, again your thinking is right that transporter will face administrative challenges. Our government is not sufficient, no doubt in that but they are smart enough to put burden on public for everything.