A

SIP Report
On
‘‘A Study Of TDS On Transportation And Logistics
System’’

Submitted to
R.T.M. Nagpur University, Nagpur

In partial fulfillment of the requirement for the degree

Master of Business Administration

Submitted by

Miss. Aishwarya S. Hiwarkar

Under The Guidance of

Dr. R.O. Panchariya

Department of Management Studies

Bapurao Deshamukh College Of Engineering
Sewagram
Session 2019-20

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 CERTIFICATE

This is to certify that Miss.Aishwarya S.Hiwarkar is a bonafide student of MBA

semester-III in Department Of Management Studies, Bapurao Deshmukh College of
Engineering, Sevagram. For the academic session 2019--20 has completed her SIP
work entitled ‘‘A Study of TDS On Transportation and Logistics System .’ Under
the guidance of Dr. R.O. Panchariya. The SIP report is being submitted to
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur in partial fulfillment of the
requirement for the degree of Master of Business Administration..

Dr.R.O.Panchariya Dr. R. O. Panchariya

SIP Guide H.O.D.

(co-ordinator)

D at e :
Place: Sevagram, Wardha
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 DECLARATION

I, Aishwarya S. Hiwarkar here by declare that the work presented in this SIP report
has been carried out by me as bonafide student of the department of Management
studies, Bapurao Deshmukh College of Engineering Seagram, Rashrasant Tukdoji
Maharaj Nagpur University, Nagpur during the academic session 2019-20.

I here by declare that this SIP report entitled, ‘ A study of TDS On transportation
and Logistics System. Is a bonafide and authentic record of work done by me under
supervision of Dr. R.O. Panchariya during M.B.A Semester-III

The work presented here is original and not duplicated from any other source & also not
submitted earlier for any other degree / diploma to any university.

Miss. Aishwarya S. Hiwarkar

MBA Semester-III
DAMS, BDCE, Sewagram

D at e :
Place: Sevagram, Wardha

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 ACKNOWLEDGEMENT

Performing as a internship in TLL was really a great experience. Everyone in the

company is so friendly and cheerful personality. Somewhat the work is
monotonous but the atmosphere is always joyful.

But as a new person it was not that much easy. So i would like to pay my special
thanks to Mr. Manojit Moharil (Senior HR Manager) and Mr. C. Dilip Kumar
(Chief Accounts Manager) for making me comfortable and also for their efforts
towards me.

My thanks are also to Dr. G. V. Thakare Principal, B. D. College of Engineering,

Sewagram, Wardha , Dr. R. O. Panchariya, Co-ordinator, Department of
Management Studies, B. D. College of Engineering, Sewagram, Wardha and SIP
In-charge for extending their great support and inspiration throughout my project
work.

Last but not the least; I would like to thank my family and friends for their constant
encouragement and support.

Miss. Aishwarya S. Hiwarkar

M.B.A. Semester-III

DAMS, BDCE, Sewagram

D at e:
Place: Sewagram, Wardha

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 INDEX:

Sr. No. Contents Page No.

1. Introduction to Topic

1.1 Theoretical Background

1.2 Company Profile

2. Review of Literature

3. Research of Methodology

3.1 Need of The Study

3.2 Objective of Study

3.3 Limitations of study

4. Data Analysis and Interpretation

5. Findings, Conclusion and Recommendation

5.1 Findings

5.2 Conclusion

Bibliography

Annexure

A. Questionnaire

A. B. Certificate of Company

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Introduction:

TDS on Transporter:

Here, we will be discussing TDS on a transporter. i.e, the TDS applicable on

payment made to the transporter. Introduction to Section 194C Section 194C of the
Income Tax Act, 1961 states that any payment to a transporter is subject to a Tax
Deduction at Source (TDS) at the rate of:
1% in case if the payee is an Individual or a Hindu Undivided Family, and 2% in
case of other payees (i.e. partnership firm, company, trust, body of individuals or
association of persons)In case, if such payment exceeds Rs. 30,000 per contract or
aggregate of such payments of contracts in a financial year exceeds Rs. 100,000.
TDS on transporter during the course of plying, hiring and leasing goods
carriageEarlier .The earlier provision (up to May 31, 2015) provides that no
deduction of tax is required from payments made to the transporter during the course
of plying, hiring and leasing goods carriage if the transporter furnishes his PAN to
the payer.
New Provision with effect from June 1, 2015.The new provision of Section 194C
restricts the cases for non-deduction of tax. Non-deduction of tax will be available
only for small transport operators owning not more than 10 goods carriages for the
financial year. Process identified If the transporter is not owning more than 10 goods
carriage at any time during the previous year, then deductor has to obtain a
declaration from transporter along with the copy of a PAN before credit or payment
to the transporter, whichever is earlier.
The transporter is liable for TDS if more than 10 goods carriage is owned at any
time during the year. This deduction is done at the time of paying charges to goods
transporter. TDS will be deducted at the rate of 1% or 2% as the case may be; based
on the transport contractor’s status which can be identified by the 4th alphabet of the
PAN.
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 Therotical Background:

Transportation :
A trucks or lorry is a motor vehicle designed to
transport cargo. Trucks vary gently in size, power, and configuration:
smaller varieties may be mechanically similar to some automobiles.
Transportation refers to any type of material handlings equipment that
moves material from one spot to another. This can be from one facility
to another facility or simpliy from a docking platform to a storage area.
Industrial trucks, haulers, cranes, conveyer belts and lifts are types of
transportation equipment. Cranes are used to move material but are
restricted to certain zones. Trucks can move material anywhere, and
conveyor belts move material along a single path. Commercial trucks
can be a very large and powerful and may be configured to be mounted
with specialized equipment, such as in the case of refuse trucks, fire
trucks, concrete mixers, and suction excavators. Strictly speaking, a
commercial vehicle without a tractor or other articulation is a “straight
truck” while one designed specifically to pull a trailer is not a truck.
Modern truck are largely powered by diesel engines, although
small to medium size trucks with gasoline engines exist in the US,
Canada, and Mexico. In the European Union, vehicles with gross
combination mass of up to 3.5t (7700 lb) are known as light commercial
vehicles, and those over as large good vehicles
Transportation systems designed around trucks are the most
flexible- because a mix of small and large equipment can be readily
assembled and deployed and because all points are accessible to trucks.
For the reason, by the last quarter of the 20th century, trucking became
the dominant mode of transportation

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 Carriage inward:
Carriage inwards is the shipping and handling
costs incurred by a company that is receiving goods from
suppliers. The most appropriate accounting treatment of
carriage inwards is to include it in the overhead cost pool that
is allocated to the goods produces in and accounting periods. If
this is a minor amount, it could just be charged to expenses in
the period incurred, with no inclusion in the overhead cost
pool. Thus, depending on the accounting treatment, it may first
appear in the balance sheet as an asset, and then shift to the
cost of goods sold in the income statement as goods are sold.

carriage outward:
Carriage outwards is the shipping and handling costs
incurred by a company that is shipping goods to a customer. The
company may be able to bill customers for this cost: is not, then the
company should charge the cost to expense in the period incurred.
Thus, the cost of carriage outward should appear in the income
statement in the same reporting period as the sale transaction to which
it relates. The cost of carriage outward usually appears within the cost
of carriage outwards usually appears within the cost of goods sold
section in the income statement.

1. GL-510600 (General ledger) Freight inward.

2 GL-601004 (General Ledger) Freight outward
3 Transportation charges other- 601007
4 Transportation charges site material-60100

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Logistics:
Logistics Management involves getting your products to your
customers on time, in the correct quantities, in good conditions at the
right price. This includes overseeing transportation, as well as storage
of materials, production and inventory management. Logistics also
includes the packaging of products for storage and shipment.
Logistics involves both internal and external distribution networks.
Foreign freight forwarders- handlers of myriad foreign freight
services such as rate quotes, vessel chartering, booking of vessel
space, handling of documentation and cargo insurance, tracing and
expediting, arranging inland transportation, and providing translation
services. Export management- Supplies of expertise to those wishing
to sell products overseas but lacking the necessary resources. Export
trading companies- Locaters of overseas buyers. They also handle
export documentation, transportation, and the meeting of foreign
government. Export Packers- Suppliers of export packaging services.
Ship agents- Local representative of the ship operator that handles the
ship’s arrival, bething clearance, loading, and unloading.

Miro: Invoice w.r.ref to purchase order. Further based on this

payment check will be issued to vender. Miro deals with invoice
verifications activities for bills raised from vender end.

Migo: Migo is related to goods movement activities like goods

receipts from vendor, goods return to vendor etc.

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Company profile:
Transrail Lighting limited is an integrated Power Transmission and
Distribution company, which provides turnkey solutions in areas of
transmission, Distribution and Rural Electrification, and a lighting
solutions provider for outdoor lighting. At its core, we are a company
driven by passion for quality innovation and excellence.

As a turnkey solutions provider in the transmission and distribution

sector, we undertake designing testing manufacturing of towers and
conductors and construction and erection activities such as areas of
survey, civil work, and erection and commissioning of lines. Transrail has
more than three decades of experience as a T&D player given that it derives
capabilities and experience from the transfer of the T&D business by M/S
Gammon India to the company.

In the lighting solutions business, the company undertake designing,

manufacturing, testing installation and supply of galvanized steel poles
including monopoles for the power T&D ,street lights, high masts, stadium
masts along with luminaries, and comprehensive engineered solution for
excellence.

Company performance:

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Company Details:

CIN - U31506MH2008PLC179012

Company Name - Transrail lighting Limited

Company status - Active

RoC - Mumbai

Registration Number- 179012

Company Category - Company Limited by Shares

Company Sub Category - Non-govt. company

Class of company - Public

Date of incorporation - 18 February 2008

Age of Company - 11 years, 7 month, 20 day

Activity - Manufacture of electric lamps and lighting

equipment.

Company vision:

To become world class leaders in Transmission & Distribution and poles business,
through strong customer relationships built thnrough quality services, responsible
conduct and a strong concern for environment and safety. In both domestic and global
markets

Company Mission:

To design, build and service excellent and reliable physical infrastructure for
improved living, enhanced work environment and swift transportation.

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.

Review of literature:
There are many research done in the past by many researches
on TDS, e-TDS filling of TDS, etc. Geetha R. And Sekar M studied the tax payer’s
perception awareness towards filling of income tax return , and to analyses the level of
satisfaction among the tax payers towards e-filling of income tax return. Their study
revels that 56% of the respondents are female. It is inferred from the above the majority
of the individual tax prayer are male (56%) it is concluded that there is no significance
relationship between the residential status and the levels of awareness regarding the e-
filing of income tax returns, time of return, cost of e-filling, e-payment through banks,
TDS return, registration number, usage of IRS forms and the terms and conditions of e-
payment.

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 Research Methodology:

TDS on transportation charges paid by it to a new year of the transporters claiming

that the transporters are having PAN on. But in case of one transporter he deducted TDS on 100000 at
the rate of 2%. According to me TDS should be deducted at the rate of 20% as per recent notifications.
When I asked the reason for such act on the part of client, he told that the transporter is having PAN
No. so he need not deduct TDS. So according to him deducting TDS at the rate of 2% is having no
problem.
But my contention is if TDS is to be deducted on Transportation charges then it
should be deducted at 20%, because now there is no such rate of 2% on transportation charges.

Objectives Of Study:

I. To understand the concept of TDS on Transportation and logistics system

II. To understand how TDS will in Indian logistics companies.
III. Identify the factor which affect the logistics industry and its analysis.
IV. To understand the benefits of TDS over the current taxation system in India.
V. To evaluate the challenges of TDS which transportation and logistics industry have to face.

To collect the tax at the time of payment of income to various assesse such as contractors,
professionals etc. The government requires funds throughout the year. Hence , advance tax
and tax deducted at source help the government get funds throughout the year and run the
operations smoothly.

Scope of study:

Generally, as internship consists of an exchange of services for experience

between the students and an organization internship program is a good opportunity to show our
learning skills that we get from our college. Students can also use an internship to determine.
I they have an interest in a particular career. It helps to build curriculum vital (CV) for the Students.

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 .
Need of study:
In college we learn the organizational structure only in theoretical basis.
Internship is the place where how theoretical knowledge are useful in real life scenarios.
For that students need to prepared resumes, write cover letter and go through interviews as if
they were applying for the job. The gives students valuable experience in preparation for
employment. The internship albums opportunities for the development of practical’s skills in
context where professional critism is both immediate and constructive. It also furnishes
students with opportunities to observe and understand connection between coursework and
skills needed to perform effectively in a given profession finally. Internship aid in the
identification of knowledge and skills essentials to doing well in a particular profession.

Limitations of study:
-Difficult to generalized the technique to accommodate (these difficulty for ‘‘
Mathematical programming, ‘‘ Including linear and non- linear programming.
-Economy of scale the per-unit cost of transportation on link decreasing with the
volume (non-linear and concave, there is a trick to convert a ‘‘Non-linear program
with a piecewise linear but exists for a piecewise linear but convex objectives
functions to a linear program; no such trick exists for a piecewise linear but concave
objectives function)
-Fixed cost : transportation usually involves fixed charges. For example, the cost of
truck rental (or cost of trucking in general) consists of a fixed charge that is
independent of the mileage and mileage charge that is proportional to the total
mileage driven. Such fixed charge render the objectives function NON-LINEAR
and CONCAVE and make the problem much more difficult to solve.

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Data Analysis and Interpretations:

If Transporter is not owing more than 10 goods carriage at any time

during the previous year, them we, as payers(Tax deductor) have to obtain a declaration
from transporter along with his copy of PAN before credit or payment to transporter,
whichever is earlier.

Secondary Data:

Cash flow statement:

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Balancesheet:
In financial accounting, a balance sheet or statement of financial
position or statement of financial condition is a summery of the fianancial
balances of an individual or organization.

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Bills:

Invoice bills:
An invoice, bill or tab is a commercial documents issued by a seller to a
buyer, relating to a sale transaction and indicating the products, quantities,
and agreed prices for products of services the seller had provide the buyers.

E-way bill:
It is a paperless, technology solution and critical anti-evasion tool to check tax leakages
and clamping down on trade that currently happens on a cash basis

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 Finding, Conclusion and Suggestions:

Findings:
An evaluation of logistics and transportation professional. A
business Logistics 1995 .Educational resources for logistics and
transportation management are evaluated. Data were collected using a
questionnaire mailed to 177 logistics sand transportation educators.
The objectives was to target all college and university educator
involved in logidtics and transportation education throughout the
India. There is currently considerable concern with limiting the
growth of transport demand, the use of resources and related
pollution.

Conclusion

After complete my Industrial training, I had been exposed to a

finance executive and financial analyst working. Throughout my internship I
could understand more about the definition of finance and financial planning
and prepare myself to become a responsible and innovative technician and
financial manager in future. Along my training period I realized that
observation is a main element to find out the root cause of a problem. Not
only for my internship report but daily activities too.

Following are some conclusion that very useful and important in

organization.
1. Critical, analytical and positive thinking.
2. Time Management
3. Hard work for Goal achievement
4. Smart work

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Bibliography:

 www.transraillighting.com
 https://www.indiafilings.com/learn/gst-advantages-disadvantages/S
 economictimes.com/company/transrail-lighting-limited-/U3

 www.gammonindia.com
 www.transrail.in/
 www.tradeindia.com
 www.investopedia.com
 www.businessdictionary.com
 www.accountingedu.com
 www.bankbazaar.com

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Annexure:

Questionnaire:

1. What is TDS?
2. How to File TDS return?
3. What is TDS certificate?
4. When is TDS not Applicable?
5. How much TDS charge on the Transporter?

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