SUB-CONTRACTOR OWNING NOT MORE THAN TEN GOODS CARRIAGE

   
 

Where the payment is to be made by a Contractor to an individual Sub Contractor owning not more than TEN goods carriage:

The law states that no deduction shall be made from the amount of any sum credited or paid or likely to be credited or paid during the previous year to the account of the sub-contractor during the course of business of plying, hiring or leasing goods carriages, on production of a declaration to the person concerned paying or crediting such sum, in Form 15-I and verified in the prescribed manner and within such time as may be prescribed, if such sub-contractor is an individual who has not owned more than TEN goods carriages at any time during the previous year:

Just to briefly summarize above, the following should be noted:

  • The payee is an Individual;

  • He is a Sub contractor;

  • He is in the business of plying, hiring or leasing goods carriages;

  • He does not own more than TEN goods carriages at any time during the previous year;

  • The payment is made by a contractor to him during the course of above business carried on by him;

  • The payee has furnished a declaration in a prescribed form to the payer within such time as may be prescribed.


PLEASE NOTE:

  • The payee shall furnish the declaration to the Commissioner of Income Tax, within whose jurisdiction the office of the contractor is situated;

  • Form 15-I is to be given to the Contractor by the Sub Contractor so as to take benefit of no tax deduction where as a separate form, i.e. Form No. 15J is to be furnished to the Commissioner of Income Tax on or before the 30th June following the Financial year.