TDS on Contract

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hemal (Querist)
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26 February 2009 Comany has contract with other co for transport of goods, driver of the truck is providign form no. 15I,however bills are raised by the transport company,
Whether TDS is deducted or not? & the same question is in applicability of Sec.40A(3) for payment exceeding Rs.20000.

chetan soni

chetan soni (Expert)
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26 February 2009 Firstly check the how is the owner of the truck. If driver is the owner & then bill should be raised by driver, take his 15I & don't deduct TDS.
In case owner is company then tell company to provide you exemption certificate for TDS otherwise deduct the TDS.

For Sec 40A(3)check the Rule 6DD & see whether your situation fix in the exceptions.