kshashidharan11 Started The Discussion:
I am working in pvt.co. I have to make freight payt in lacs.now problem is
say i am getting LR copy from (e.g.) abc transport co. who is only broker and not owner of lorry. hence at the end point we have to pay freight to
lorry owner who is other than abc transport co. we r paying freight by cheque only fvg.lorry owner's name not abc transpor co.Whether it is
correct ? both lorry owner & abc transport co.have PAN No.s now at the
time of accounting & issuing TDS certificate on whose name i have to book accounting entry & issue TDS certificate.
Pls clarify if the lorry owner is the owner of abc transport? If no then how is abc transport related to you?
If both are different, then tommorrow if abc transport claims for the freight, what are you going to do.
In this case, you could also issue the TDS certificate in the name of the lorry owner as he has got PAN which means he is also an assessee.
Section 194C (TDS on Contract) clearly states the the contract could be of oral in nature which means a mere understanding between two parties can be termed as a contract.
Hope this clarifies your doubt.
Actually a transporter agent may be owner or a lorry or he may get trucks from other transporter, but you are paying if only to the transporter agent and not to the original lorry owner(unless the agent itself the owner).
Suppose, if you book a lorry from abc transporter agent, and say he dont have own truck, he may contact a lorry owner to travel. Here the lorry name willbe registered in owner's name and he will be paid for his service by abc transporter.
Any how, the LR must state only the name of abc transporters . Because
No lorry owners will print lorry receipts of their own. The lorry owner is paid by the abc transporter in turn the abc transporter will raise freight invoice to your company with an LR carriying his concern's name as ABC TRANSPORTERS.
Hence the agreement here is with your company and the abc transporter and not in any way to any lorry transporter.
So while making payment to abc transporter, you have to deduct TDS from him and TDS certificate have to be issued in the name of abc transporter.
I hope this will clarify you doubt absolutely.
Found This Useful? +Vote Up This Page Via Google.
Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.
Explore Topical Knowledge Areas
Interesting Relevant Discussions