Excel for
Chartered Accountants

The Finance Bill 2015(26 of 2015) of Budget 2015-16 has amended section 194C (6) related to deduction of tax at source on payments made to a transporter. As per the amended section TDS shall be deducted unless the transporter who is engaged in the business of playing, hiring or leasing goods carriage owns not more than goods carriages and furnishes a declaration to this effect along with PAN to the payer. The amendment is applicable from 01-06-2015.

Meaning of ‘owner’ registered or beneficial? Click Here >> Also note that ITAT Hyderbad has ruled that provisions of section 194C(6) are independent of section 194C(7). Violation of section 194C(7) and disallowance u/s 40(a)(ia) Click Here >>

No format of the declaration/undertaking has however been prescribed. In view of this, the declaration can take any form so long as it fulfills the requirement of the section 194C(6). However, an illustrative declaration could be on the following lines which may not be notarized. Please bear in mind that the declaration is required for each previous year

Declaration under Section 194C(6) for Non-deduction of Tax at Source - Sample Format - 2

Declaration/undertaking u/s 194C (6) by Transporter not owning more than ten heavy goods carriages/trucks during the Financial Year ………………….

1	Name of the individual (truck owner)
2.	Name of the father
3.	Permanent Account Number (PAN)
4.	Address
5.	If assessed to tax, Assessment Jurisdiction (Circle/Ward)

6. Particulars of the heavy goods carriages/trucks owned during the Financial Year are as under

*S. No.*	*goods carriage / truck Registration Number*	*Date of Registration*

Verification

I, ………………………………… son/daughter of Shri …………………………….. solemnly declare that to the best of my knowledge and belief, the information given in this declaration is correct and complete and particulars shown therein are true.

Place: Date: Signature

Declaration under Section 194C(6) for Non-deduction of Tax at Source - Sample Format - 2

Declaration/undertaking u/s 194C (6) by Transporter not owning more than ten heavy goods carriages/trucks during the Financial Year ………………….

To ..................... (Name, address of the payer)

Declaration

I, .................. Proprietor/Partner/Director of M/s .................................. (hereinafter “the contractor”) do hereby make the following declaration as required by sub section (6) of Section 194C of the Income Tax Act, 1961 for receiving payments from the payer without deduction of tax at source,:

1. That I/We am/are authorized to make this declaration in the capacity as Proprietor/Partner/Director.

2. That the contractor is engaged by the payer for playing, hiring or leasing of goods carriage for its business.

3. That the contractor does not own more than ten goods carriage as on date.

4. That if the number of goods carriages owned by the contractor exceeds ten at any time during the previous year 2015-16 ( 01-06-2015 to 31-03-2016 ) , the contractor shall forthwith, in writing intimate the payer of this fact.

5. That the Income Tax Permanent Account Number (PAN) of the contractor is .................. . A photocopy of the same is furnished to the payer along with this declaration.

Place: Dated: Declarant

VERIFICATION

I the above named declarant do hereby verify that the contents of paragraphs one to five above are true to my own knowledge and belief and no part of it is false and nothing material has been concealed in it.

Place: Dated: Declarant

Download Sample Declaration in Fillable MS Word Format Click Here >>

MS Word Format of Declaration/Undertaking u/s 194C(6) by Transporter Owning Ten/Less Goods Carriage for Payments without TDS |31-03-2015|