tds

This query is : Resolved

HARSH (Querist)
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20 May 2010 we pay lorry hire charges to the Lorry owner and suppose the lorry owner have furnished the copy of PAN and the freight payable to the lorry onwer exceedes Rs. 50000/- whether we are liable to deduct TDS or not

Jagdish Bhalia

Jagdish Bhalia (Expert)
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21 May 2010 Yes, You are liable to deduct TDS.

If the lorry is hired per hour basis then TDS would be deducted u/s 194(I) @ 2% otherwise TDS would be deducted @ 2% u/s 194(C).

from 01.04.2010 if PAN is not furnished then you have deduct TDS @ 20%

You are paying hire charges not freight.

In case of transporters if transporter furnish his PAN then TDS would not be deducted.