Deduction of tds by traveling agent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2012 my client doing tax audit every year

my question is ---my client want to deduct tds u/s 194c as hire charges but the car owner to whome my client paying annually less than 180000 they are saying donot deduct tds as 194I applicable only when if exceeds 180000,& they are arguing they are not coming under 194C,is it ok

CA bhargava

CA bhargava (Expert)
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08 November 2012 In the above transaction 194I doesnt apply as, 194I is applicable to rental Income ., and generally rental income is with leasing of immovable property.,

For the purposes of this section, - (i) "Rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or any building (including factory building), together with furniture, fittings and the land appurtenant thereto, whether or not such building is owned by the payee;

therefor the tax is to be deducted U/s. 194c only

Nilang

Nilang (Expert)
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08 November 2012 In my view Section 194I is applicable since it provides for TDS on rent of plant and machineries also and under section 32 car pertains in Plant and Machinery Block.Hence in my view the car owner is right in not to deduct tax since hire charges does not exceeds Rs.180000

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