TDS Not Decuction

It will come under sec 194C of IT act of 1961 and rate at deduction 2.244%

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If the payment made to hime exceed Rs 20,000 ,Tax has to be deducted u/s 194 C and rate will vary with type of contractee and payment made to him. For ex: Person: Indl,HUF,BOI& AOP, payment ,payment made morethan 10 lakhs - 2.266 % and lessthan 10 Lakhs -2.06%. Person : Firm Taxable income exceed Rs 1Crore-2.266% Taxable income not exceed Rs 1Crore-2.06% Person:Company Taxable income exceed Rs 1Crore-2.266% Taxable income not exceed Rs 1Crore-2.06%

Expecting few more replies.

Yes.TDS has to be deducted as it comes under 194 C. When a transporter hires a truck from another transporter, it is a contract to use that truck for a certain period (usually definite), for which monetary payments are made on an agreed basis.This agreement is classified as "Contract". Such payments are subject to TDS. As regards rates of TDS, its been answered by Mr.Sundararajan.