tds by transporter

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Surendra (Querist)
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24 August 2009 dear sir/madam
may i want to know that is it true that as per new section 194 c transporter should not be deducted tds w.e.f 01/08/2009. And new section also allows the transporter can pay Rs. 35000/- w.e.f 01/08/2009.
i want to know detial for this section
thanks in advance

Shyam Lal Naik

Shyam Lal Naik (Expert)
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25 August 2009 You are right. The effective date is 01.10.09.

1. If the transport (sub)contractor furnishes PAN, TDS not to be deducted.

2. Cash payment upto Rs. 35,000/- can be made to the transport (sub)contractor.