Tds on transport workorder

This query is : Resolved

shuvransu ghosh (Querist)
Follow

03 May 2013 Hi,
We are procuring RMC( Ready Mix Concrete)from a party. We will trying to make t6ransporter separate workorder for their delivery of RMC at various location depending upon the lead.Is tds applicable on Transporter workorder?

Ashish Bansal

Ashish Bansal (Expert)
Follow

04 May 2013 Well, the answer depends upon, with whom this contract will be made.

In case, the contract is made with TRANSPORTER, the billing will directly be done by Transporter himself. In that case, you need to take PAN of transporter and need not to deduct any tds.

However, if seperate contract is done with RMC provider for transport workorder, then billing will be done by RMC provider himself. In that case, this will be a normal contract and you need to deduct tds @ 1 % (for individual / HUF) or @ 2% for others.