Compliance Advisor
794 Points
Joined August 2013
Dear Sir
As per section 40A(3) of income tax act 1961:-
Any payment made to a Transporter for plying or hirring of transport
- In a single day
- To a Single tranporter
- Is more than INR 35,000.
- Through other than Cheque, A/c payee, Bank is disallowed under section 40A(3) of income tax act 1961.
In Short words :- You can pay freight charges in cash upto INR 35,000 in a single day to Single Transporter
For TDS :-
If Transporter submit a Copy of PAN card than no need to deduct TDS on payment made to Transporter.