19 November 2011
We are transport company hiring lorry from lorry booking office and paying freight to the lorry owners. During the F Y 2008-09 (Assessment year 2009-10) we have paid lorry freight to the tune of Rs.80 lakhs. 90% of the payments are made by cash and are below Rs.20000/-. For the payments made above Rs.50000/- we have deducted TDS. As we have hired the lorry from booking office, we have made payment to the lorry owners mentioning the lorry numbers.In our payment voucher also we have mentioned the lorry number only and got the signature of the drivers. Now the officer asks for the lorry owners name. He is not accepting the lorry numbers. Quoting the section. As section says payment made to persons. On his part he is correct. We approached the lorry bookings office to furnish the owners' name of the lorry. As 3 years have gone they told us that it is impossible for them to get the owner name and address. The reason they are saying is very practical and acceptable to us. One reason is at that time of booking the lorry might have owned by X. Now he might have sold to Y & Y to Z. At this junction what we have to do? Please advise
21 November 2011
As per your query you have deducted TDS from the freight payment above Rs.50000/- you may have full details of the deductees, so their is no legal fault.
However, for the payment below Rs. 20000/- you may try to prepare a list (Lorry wise) to satisfy the Assessment Authority.
The situation explained by you is very practical, it just to impossible to collect the correct details of three years before!!
21 November 2011
Thank you. We have prepared the payment Lorry wise. But the Officer asks name of the Lorry owner. He is not accepting the Lorry wise payment.
21 November 2011
Agreed with Mr. Paliwal. (a)The payment was made to person/s, (b)The payment above Rs.20k well supported with TDS and details (c) Payment below Rs.20k made to Lorry Drivers (names)alongwith Lorry numbers and against the L/R (bilty issued by the vendor-attach all such copies alongwith list.
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