194 c rate 1 % or 2%

Prakash Babu (Asst.Manager Accounts) (36 Points)

25 October 2013  

We hv to make a freight payment to one of our vendor.

he is claiming the payment in his proprietor concern name ( say XYZ), with his personal PAN No. on the invoice.

Chq is going to be issued on his concern name  (XYZ) do we need to deduct tds @ 2% or 1%.

He says 1% is applicable..

pl . help me.