TDS QYERY URGENTLY

Dear Virag,

As per Section 194C Any amount paid / credited to the contractor engaged in business of plying, hiring or leasing goods carriages, who furnishes PAN to payer is exempt from deduction of TDS. If PAN is not furnished by such contractor the normal rate (2% for contractor & 1% for sub contractor) will apply till March 31 2010. Thereafter rate of 20% will apply u/s 206AA.

Hence in your case no TDS is deductible if the carraige owner furnishes PAN. Other wise 2%/1%/20% deductible as above...

if pan is furnished by the transporter than no tax is deductible

PAN IS FURNISHED THEN THERE IS NO TDS DEDUCTION OTHERWISE 2% OR 1% TO BE DEDUCTED UPTO 31ST MARCH 10 AND 20% THEREAFTER.