Tds on railway payments

This query is : Resolved

CA Ganesh Karthik (Querist)
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02 July 2014 Dear Expert,

We will be making payments to a vendor who has taken on lease / rent few rakes of railway. We will be moving our stocks through such vendor and will be making payments to him (not a direct payment to railways).

Am I supposed to deduct TDS on freight payments to this vendor?

Thanks in advance

Ganesh

R SUGUMARAN

R SUGUMARAN (Expert)
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03 July 2014 Since the payments are made to the Vendor and not to the railways directly, 194c is applicable, TDS needs to be deducted