Payment excedding Rs. 35000/- in case of transporter

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Vinit Jain (Querist)

30 October 2009 Sir

I have a query that as u know in this budget the cash payment to transporter exceed from Rs. 20000/- to 350000/-

but i am not clear that this is ag one transporter or one GR

I am facing a problem for the freight payment

I.e i am working in a industrial area in baddi HP . and in this area there is only one union and we need 5 truck on daily basis avrage freight is 15000/-
Ie Rs. 75000/- per day freight ag 5 seperater GR or seperate owner but from one union, GR raise by the union

now what is mode of payment.

Further i want to also clear that in budget there is specify the reason behind the exceeding limit from 20000/- to 35000/- i.e for daily routine payment :- Diesal , maint. and fooding. and most of the truck owner do not have bank account.

if in case of union each GR is a seperater contract than i think we make cash payment ag all the 5 Gr/truck owner even the total payment exceed Rs 35000/-

Satpal Singh

Satpal Singh (Expert)

30 October 2009 For the purpose of TDS ecah G.R. is considered as seprate contarct and the same logic can b applied for the section 40A(3). Accodingly you are right payment up to 35000 for each G.R. issued from union can be made in cash.

Vinit Jain

Vinit Jain (Querist)

30 October 2009 Thanks sir

please enlarge the answer with example