Tds on transportation

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Respected Sir,

             My one of client has made payments for transportation but there is no contract or registration of transporter anywhere. Actually party make payment to his cousine who work with him.That cousine have no transporation registration or own trucks etc... He actually hire different trucks drivers form road site who have not transport agency or anything else. He pay them their charges and also took some amount of money for own.

             For ex. My party pay Rs.55,000 to his cousine for transportation now that cousine make payment of Rs.50,000 to truck drivers and keep Rs.5000 with him for himself.

            So, How TDS provision u/s 194C will applicable on this?

            Reply as soon as possible.

            Thank you.

        

Replies (1)

Ur cousion is acting as an agent,which is a verbal agreemnt.But,transporter should raise bill.if not providing bill,ask ur cousion to do so.If raising bill n fulfill 194c ,then deduct tds.if bill is not raised ,then tds cannot be deducted.It would then better be to stop this type of payment/service


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