Tds and service tax on transporter

CA Parul Saxena (CA) (8422 Points)

30 October 2014  

In our organisation local vehicle owner are hired for material transportation to small buyers and their daily cartage amounts to Rs.300 or Rs.500 etc approximately their payment is say Rs.17000 for a month.My queries are:-
1)Whether for TDS non applicability PAN no is required in this case also (as tds is not applicable if pan no, is available)?No bill also is received.
2) If no need to obtain the bill as these are small transporters then there is no need to pay service tax on the same?