We make payment to transport contractors. Most of them have intimated their PANs and, consequently, tax is not deducted under section 194C. Please clarify whether such payments should be shown in quarterly e-TDS returns in Form No. 26Q. Moreover, it is given in the law that information pertaining to non-deduction of tax in the case of transport contractors intimating PAN, should be submitted to the department in the prescribed form. In which Form No. this information should be given to the department. Moreover nothing is clear whether it should be sent in paper mode or electronic mode or along with quarterly return in Form No. 26Q.
Tax is not deductible under section 194C in the case of payment/credit to transport contractors (who have intimated their PANs). The following points should noted –
1. There is no requirement to include details of such payment in quarterly returns in Form No. 26Q.
2. Such information should be intimated to the department in a prescribed mode. Till date, the Central Board of Direct Taxes has not notified any Form for this purpose. Such information shall be intimated to the department only after a Form is notified for this purpose.
Dr. Vinod K. Singhania