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Transporters will get higher liquidity due to a drop in salary costs on account of lesser provident fund deduction. They will also save some amount due to 25 percentage point lesser tax deducted at source (TDS), said Mahendra Arya, President, All India Transport Welfares Association (AITWA).
“Customers of transporters used to deduct 2 per cent over the billed amount as tax deducted at source and we had to claim the deducted amount later (from the government). Now, our customers will deduct 1.5 per cent as TDS,” said Arya, adding that there should have been no TDS for a longer duration as profitability of the business is at risk.
However, Wednesday’s tranche of stimulus announcements did not have much specifically for the transport sector, rued AITWA and the All India Motor Transport Congress.
In order to provide more funds at the disposal of the taxpayers, the rates of TDS for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25 per cent of the existing rates, said Finance Minister Nirmala Sitharaman.
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