Tds on payment made as freignt charges to union

This query is : Resolved

Nitin (Querist)
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20 March 2016 My company has made payment to a union who provide the vehicle for transport of goods.
Union has contract with small contractor for providing vehicle.
Now my query is will i have to deduct TDS on payment made to Union under PAN No. of Union i.e AOP under amendment made by Finance Act 2015.
if No under which provision??

Soumitra Basu

Soumitra Basu (Expert)
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24 March 2016 No TDS is required to be deducted since the Union is working only as collecting agent. However, the PAN of the Vehicle Owner along with a certificate that they do not own more than the specified number of vehicle should be obtained by the payer of rent.