lorry frieght

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jaigurudev (Querist)
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18 January 2011 i pay lorry frieght to truck drivers as cash 20000 many times.and same truck is coming to my shop many times and i have paid 125000 as lorry frieght to him.he has no pan card and also he is not giving any proof for the payment.please advice me how treat.should i have to pay tds on lorry frieght?thanks

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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19 January 2011 You have to take proper receipt for the payment made without which expense will be disallowed. Further if the owner of the truck does not provide his PAN you are bound to deduct TDS @ 20%.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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19 January 2011 you can insist them to sign on the simple paper ackowledgement.

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Balakrishnan

Balakrishnan (Expert)
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19 January 2011 Lorry Freight payment to a single truck on a single day exceeding Rs. 35000/- can not be made in cash. They have to be paid only by crossed cheque or draft.

Lorry Freight for single trip if it exceeds 30000/- or cumulatively exceeds Rs. 75000/- per year, you have to deduct TDS at 20% if they don't have PAN