We are paying transport charges for one contract from Calcutta to Kolhapur of ₹ 45000/- by cheque and not deducting tds as he is giving declaration (Vehicles below 10 Nos.) and PAN.
Also we will not deduct tds from his transport charges even if his total amount goes beyond 75000/- for f.y. 2015-16.
Is it correct or wrong ?
TDS on freight payments: whether transporter declaration and PAN prevent withholding despite cumulative receipts exceeding the statutory threshold. Whether tax must be deducted at source on payments to a transporter who furnishes a declaration of limited fleet size and provides PAN, when the payer proposes not to deduct TDS even if the transporter's aggregate receipts during the relevant year exceed the statutory threshold. (AI Summary)