Question ID : 2630

Supplementary to Question ID 2839 & Answer ID 3876

This is contuation with Sri Ram Avtar Sarmas answer that tax need be deducted u,s 194C on payments made towards lorry freight if the total amount paid to an owner exceeded Rs.50,000,- durg the year, even though dividual amounts never exceeded Rs.2,000,-.

What happens if the dividual bills towards freight are paid immediately cash so that the same is posted directly to Freight Account, stead of routg it through Lorry Owners Account? Can one avoid the liability u,s 194C by makg payments immediately cash where the same has not exceeded Rs.20,000,-? Or, should one have to mata the accounts of dividual lorry owners so as to determe the liability u,s 194C?
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