That PAN & Declaration thing wont work Because
As per 194C(6)
No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum.
As per Explanation to S.194C
(ii) "goods carriage" shall have the meaning assigned to it in the Explanation to sub-section (7) of section 44AE;
Explanation 7 to S.44AE reads as
the expressions "goods carriage" and "heavy goods vehicle" shall have the meanings respectively assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
S.2(14) of the Motor Vehicles Act, 1988 reads as
"goods carriage" means any motor vehicle constructed or adapted for use solely for
the carriage of goods, or any motor vehicle not so constructed or adapted when used
for the carriage of goods
2(16) "heavy goods vehicle" means any goods carriage the gross vehicle weight of
which, or a tractor or a road-roller the unladen weight of either of which, exceeds 12,000
kilograms
But however "work" interalia includes
(c) carriage of goods or passengers by any mode of transport other than by railways;
Therefore TDS is definitely applicable
As per Indian Contract Act , agreement can be written or verbal
This would not have any affect on the subject mstter
It appears that Hospital Co. pays the clinical establishment everytime it uses the services of clinical establishment , so not expecting 30,000 or more amount in single go
Overall threshold limit of 75,000 might be crossed
If the Tax was not deducted because the threshold limit was not deducted then there should be no problem but once the limit is exceded then , you must deduct tax even for previous transactions on which earlier tax was not deducted.
[Refer S.201 for interest]
194C(5) No deduction shall be made from the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor, if such sum does not exceed thirty thousand rupees :
Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds seventy-five thousand rupees, the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section.
CAclubindia
