tds
This query is : Resolved
15 February 2009
can anyone tell me wht will be the tds rate for deduction on hire charges in respect of vehicle hiring?????
15 February 2009
As per my opinion, If the vehicle is hired for full time then it shall be covered under 194I, and if for specific purpose like pick and drop facility, then 194C is applicable.
16 February 2009
thnx
16 February 2009
rent under section 194I cover land, building (including factory building) land appurtenant to a building (including factory building)machinery plant equipment furniture fitting.
I think vehicle should not be covered into plant & machienary.
So TDS will deduct in 194C
I think vehicle should not be covered into plant & machienary.
So TDS will deduct in 194C
16 February 2009
It is a debatable point actually. We have discussed a long on this issue in Forum Section of this website. And the result of the discussion was that i wrote above in my first reply. Many members suggest for 194C but many other suggest for 194I. Practically I think, that until we have any confirmed provision in this regard, its safer to deduct TDS at higher rate. Ultimately, the party will claim it in its ITR so no loss to it. And the deducter will also be safe. But this is my personal view. Views of other members is required on this issue.
16 February 2009
Views of another member as we discussed are as below :
The section 194 I is related with the rental /hire charges payment which was limited to land & building rental till 13th July 2006 but w.e.f 14th July 2006,the coverage of section 194 I has been expanded to the equipments,plants ,machineries ,furnitures, computers and vehicles rental/hire charges payments.
( in the cases where fixed nature of service is absent and hired P&M or vehicles are used in the random discretion of the service receiver).
Hence, we must exclude the rental payments from the purview of section 194C and TDS should be as per specified rate under section 194I of Income Tax Act.
The TDS rates u/s 194 I are as under –
194 I _ Rent of Land/building _ 20.60%(1 Crore)
194 I_ Rent of P& M (DG Sets, Cars, Wireless etc)
10.30%(1 Crore)
If the vehicles in site has been taken on rent and at the fixed contract of pickup/drop facility of staff (work specified),hence in presence of work as per definitions under 194C,the section 194I will not be attracted.The detailed circular of CBDT No:681 is attached herewith for your reference
http://icai.org/resource_file/97641223-1225.pdf
The section 194 I is related with the rental /hire charges payment which was limited to land & building rental till 13th July 2006 but w.e.f 14th July 2006,the coverage of section 194 I has been expanded to the equipments,plants ,machineries ,furnitures, computers and vehicles rental/hire charges payments.
( in the cases where fixed nature of service is absent and hired P&M or vehicles are used in the random discretion of the service receiver).
Hence, we must exclude the rental payments from the purview of section 194C and TDS should be as per specified rate under section 194I of Income Tax Act.
The TDS rates u/s 194 I are as under –
194 I _ Rent of Land/building _ 20.60%(1 Crore)
194 I_ Rent of P& M (DG Sets, Cars, Wireless etc)
10.30%(1 Crore)
If the vehicles in site has been taken on rent and at the fixed contract of pickup/drop facility of staff (work specified),hence in presence of work as per definitions under 194C,the section 194I will not be attracted.The detailed circular of CBDT No:681 is attached herewith for your reference
http://icai.org/resource_file/97641223-1225.pdf
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- RCM INVOICING FROM NOV-2024
- Confusion around Form 26QB fields
- Tds on building rent monthly
- Sale of property furniture sale
- Applicability of Tax audit u/s 44AB of income tax act, 1961
- Question about eligibility for tax rebate u/s 87A
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- GST Regis.
- IGST Credit-Show cause notice issued-confusion
Trending Online Classes
CAclubindia
