a proprietary concern engaged in the business of trading in furnace bricks having a turnover of 3 crores.
the firm pays freight charges to the transporters.
the transporter raises a bill of, say, Rs.22000/- towards freight chages. Out of which the firm pays, say, Rs.17000/- to the driver of the truck vide a bearer cheque and balance of Rs.5000/- to the transport agent. There are many such transactions.
on what amount is the TDS to be done? Rs.5000/- paid to the transporter or Rs,22000/- the entire bill amount?
Need your view on this issue?
This is a problem really faced in transport industry...... But reading the provisions of the act there is noting which say that TDS is to be deducted only on 5000/-
TDS IS TO BE DEDUCTED ON 22000/- IRRESPECTIVE OF MODE OF PAYMENT AND INSTALLMENT IN WHICH PAYMENT IS MADE.
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