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Tds on payment

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This query is : Resolved

D.Anil (Querist)

11 December 2013 Our firm has entered in a contract with a vehicle owner for transportation and sale of our product to customers in his vehicle which is fitted with canopy . we provide goods to him at 10% discount and payment is collected before items are delivered on the condition that the unsold goods willnot be taken back. He will also be given RS 1500/- per day for running the vehicle for sale purposes up to first 40 km. for every additional km run above 40 km he shall be paid RS.10/-per km. The daily transportation bill will be given with vehicle reading and payment is given on a monthly basis . If we have to deduct TDS on the payment or we can claim it as an exemption on payment towards transportation of goods?

C.A. Mayur J. Raiyani

C.A. Mayur J. Raiyani (Expert)

12 December 2013 if vehicle owner is registered as transporter then no tds on production of PAN.
if not, then TDS on payment basis or a/c credited whichever is earlier.(u/s 194C)

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