PAYMENT TO TRANSPORTER AND TDS THEREON
40A(3) Vs 194C
40A(3) - Single Payment or aggregate of payments upto Rs.35,000 can be made in cash in a day to any Transporter of goods (Owning less than 10 or more than 10 Vehicles) without attaching any disallowance
194C No TDS if payment is made to any transporter of goods
No TDS if any payment is made to transporter covered u/s 44AE
If he furnishes his PAN and declaration that he does not own more than 10 vehicles at anytime during the year
TDS @ 1% if payment is made by individual or HUF liable
Tax audit u/s 44 AB during preceding financial year and TDS @ 2% if payment is made by others to any transporter except above mentioned transporters
