Tds on vehcile hire charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2014 If pan card not provided what rate applicable for TDS on vehcile hire charges.
And what is limit for single payment.Which section is applicable

Ashish

Ashish (Expert)
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18 March 2014 Tds @20% is to be deducted if pan is not made available
Single cash payment to transporters in a day is rs. 35000 according to sec 43B and rule 6 DD

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 March 2014 1. Section 206AA is applicable if PAN is NOT provided. In such a case TDS is required to be deducted @ 20%

2. In case of payment to transporter, Section 194C governs the TDS provisions. TDS is required to be deducted if single payment exceeds Rs. 35,000/-

3. However if PAN is provided by the transporter, then TDS is NOT required to be deducted.

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