Payment excedding Rs. 35000/- in case of transporter

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Vinit Jain (Querist)
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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)
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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)
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30 October 2009 Thanks sir

please enlarge the answer with example