I am proprietor of my company. In current year on sale amount we charged Transportation (as per purchase order of party it is extra on our rates) & VAT to the party. The transportation amount charged were paid to transportation is paid on behalf of (Sale party) them to transporter. The total amount is around 70000/- during the year & Transpoter has PAN no.
On our books the amount of transportation is NIL after passing Journal Entry of "Paid on behalf of Party (Sale).
My question is whether i am liable to deduct TDS from Transporters account ? (As Transportation is not expense it is merely due to paid on behalf of Party)
If i am liable Than under which section & at what rate ?
Is there any exemption limit or any declaration from transporter given can help for not deducting the TDS !
Experts, Please help by detail reply with links or circulars of departments.
CAclubindia
