Cash payment to truck driver

mayank (Student CA Final ) (38 Points)

15 December 2014  

A coal trader hires a truck driver for transportation of coal from Jharkhand to Uttar Pradesh. The total freight amounts to Rs. 34500/-.

  • Will the payment be disallowed under Income Tax rules?
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  • Is TDS applicable on this payment?
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  • The rule states payment for plying, hiring or leasing goods carriage..... isthe above mentioned transaction covered under the defination of "plying, hiring or leasing goods carriage"? Can he make the payment in cash on a single day?

Thanks