Mythri Transport Vs. ACIT (ITAT Visakhapatnam)

Whether the vehicles hired by the assessee in execution of the transport contract can be termed as a “Sub-contract” and consequently the assessee is liable to deduct tax from the payment made for such vehicles u/s 194C (2) of the Act the assessee is not liable to deduct tax at source, as per the provisions of section 194C(2), on the payments made to the lorry owners for lorry hire. Consequently, the provisions of section 40(a)(ia) shall not apply to such payments.

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