tds on lorry frieght

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jaigurudev (Querist)
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16 July 2009 we have to pay lorry frieght above 50000
we have to deduct tds on lorry frieght? as parties has no pan no.and no bank account
also they accept only cash and not cheque.
please advice

vinod kumar lalwani

vinod kumar lalwani (Expert)
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16 July 2009 hello!

in income tax it is responsibility of payer to deduct TDS and there is no cluase with exception that if payee has no pan no. then deductor is not required to deduct tds and he has nothing to do with PAN no. of payee so u have to deduct TDS but make sure that payment shpuld be made in instalments so that expenses can not be hitted u/s section 40A(3).

it is payee's concern to claim TDs in his return.