Tds on payment

This query is : Resolved

D.Anil (Querist)
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11 December 2013 Our firm has entered in a contract with a vehicle owner for transportation and sale of our product to customers in his vehicle which is fitted with canopy . we provide goods to him at 10% discount and payment is collected before items are delivered on the condition that the unsold goods willnot be taken back. He will also be given RS 1500/- per day for running the vehicle for sale purposes up to first 40 km. for every additional km run above 40 km he shall be paid RS.10/-per km. The daily transportation bill will be given with vehicle reading and payment is given on a monthly basis . If we have to deduct TDS on the payment or we can claim it as an exemption on payment towards transportation of goods?

C.A. Mayur J. Raiyani

C.A. Mayur J. Raiyani (Expert)
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12 December 2013 if vehicle owner is registered as transporter then no tds on production of PAN.
if not, then TDS on payment basis or a/c credited whichever is earlier.(u/s 194C)