TDS U/s 194C

Prabeer (B. COM (H) CA & CS Final)   (5484 Points)

12 June 2010  

Please suggest the possiblity:

I have paid Rs. 4,00,000/- to a party for transporting my goods out of India (Export sale) to an Indian transporter under ocean freight, and did not deduct TDS as the payee has provided PAN.

Is the above stated transporter eligible for the provision which states that:

W.e.f. 01-Oct-2009, tax shall not be deducted on any freight charges payable to the payee-contractor who is engaged in the business of plying, hiring or leasing goods carriages, in case the payee furnishes permanent account number to the payer.