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?
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)
CAclubindia
