Sir..
I have a doubt regarding deduction of TDS feom transport contractor.
We have engaged a transport contractor who had less than 10 vehicles and providing declaration in his letter head for not deducting tds.
However he leasing and Operating around 50 vehicles in a month for providing uninterrupted services to us.
In this case whether he is eligible for tds exemption, he own less than 10 vehicles but he operat around 60 vehicles in a month.
The contractor's eligibility for TDS exemption hinges on the fact that he owns less than 10 vehicles. The operation of a larger number of vehicles through leasing does not affect the exemption criteria based on ownership.
Thus, considering the contractor owns less than 10 vehicles and has provided a declaration for not deducting TDS, he would be eligible for the TDS exemption.
Thanks a lot for your immediate responses sir... if you don't mind could please quote any legal evidence like Department clarification or any case laws sir.
CAclubindia
