TDS on Vehicle Hire is applicable party-wise and not trip-wise

CIT (Appeals) was not correct in law that the assessee will be liable to deduct the TDS if the amount of a single contract exceeds Rs. 20,000/-. The contract has to be looked into party-wise not on the basis of the individual GR. In our opinion, all the payments made to a truck owner throughout the year are to be aggregated to ascertain the applicability of the TDS provision.

RELEVANT EXTRACT OF ITAT JUDGMENT

4. Further, the AO called upon th

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