tds on transport charges

raj kumar (Querist) 21 May 2010 This query is : Resolved
truck driver submit a transport bill of "A transport agency" but he wants to issue a cheque infavour of truck owner and therefore he also submit pan card and rc copy of the truck. should i issue a cheque infavour of the truck owner without deduct tds? or what shall i do?

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A V Vishal (Expert) 21 May 2010
You can issue the cheque in favour of the truck owner, if the following conditions are fulfilled:
# In the case of transporter no TDS is required to deduct if Pan number is submitted by transporter.
# Rate of TDS will be minimum 20% or normal rate whichever is higher in all cases if pan number is not quoted by deductee wef from April1 2010