This new subsection 6 of 194-C makes such transport contractor to compulsorily provide PAN to the Deductor, failing to which TDS will be made by Deductor as per 194C.
This provision is applicable on payments made from October 01, 2009 to March 31, 2010. Such scenario should be determined by checking whether the Deductee has provided his PAN to the Deductor, during the payment.
New returns for such information
Deductor should furnish a separate return containing the details of Transport Contractors, who have provided PAN and TDS has not been made in accordance to subsection 6 of 194C. CBDT would be prescribing the format for such return and the methodology to file such return shortly. However it is expected to be one time activity for the Deductor to furnish these details after 31/03/2009, containing the information of all 6 Months.Department has not notified the new form till today(17.11.2009)
End date of such provision
Even though the date 31/03/2010, the end date for this provision is not specified in amended 194-C section, the Financial budget documents of 2009, clearly indicated its termination by such date. It is expected that the forthcoming finance act 2010, will amend the section by removing the sub sections 6 and 7 of 194C.
Whether These provisions applicable to all types of Transport contracts?
The Most FAQ about these new provision whether this provision is applicable on all types of Transport contractor or contractor covered under 44AF.The answer is that new section 194C refer section 44AF only for the purpose to define the meaning of Goods carriage so these provisions are applicable to all type of transport contractor and not restricted to person defined under section 44AF.
Further these provisions are applicable only on "goods carriage" so in my opinion it is not applicable on passenger transportation.