Tds on goods

We are receiving goods from outstation suppliers to our hotel. For the transportation charges on such goods charged by the transporter   we were deducting TDS under sec 194C. But now one transporter claims that under SEC 194C(6) that TDS is not deductible because in this section it states that  "no deduction shall be made from any sum credited or paid to the account of a contractor during the course of business of plying, hiring or leasing good carriages ". 

Please advise.

 

Replies (2)

Yes Deduction of TDS is not necessary for any amount paid towards freight,  but the condition is that the transporter should provide his PAN Number.

Agree With Mr Aiyan 

If Transporter Producing PAN then no Need to deduct TDS

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