No TDS on Transport Contracts, if PAN is provided
Posted @ February 19, 2015, 1:06 am under (TDS on Certain Payments)
As per the amended section 194C, through Finance Act (2) of 2009, No deduction shall be made from any payments made to a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN to the deductor.
This subsection 6 of 194-C makes such transport contractor to compulsorily provide PAN to the Deductor, failing to which TDS will be made by Deductor as per 194C.
As per your query, if the transpoter fails to provide PAN, then he is subjected to TDS at even higher rate.