TDS DEDUCTION

This query is : Open

Veabhav Jain (Mumbai) (Querist)
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16 June 2008 DEAR SIR,
IN WHICH SECTION TDS IS TO BE DEDUCTED ON HIRING OF CAR & OTHER HIRE CHARGES LIKE ELECTRIC EQUIPEMNETS ETC.

AND ALSO PLEASE TELL ME THAT WHETHER TDS WILL BE DEDUCTED ON SERVICE TAX OR NOT??

THANKS AND REGARDS

VAIBHAV GORECHA

Ankit Dangayach

Ankit Dangayach (Expert)
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16 June 2008 T.D.S is deducted on entire payment including service tax.
t.d.s on car hiring is deducted u/s 194C
Whereas T.D.S on hiring of other plant and machinery is deducted u/s 194I

guru santhanam

guru santhanam (Expert)
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16 June 2008 Hi Vaibhav/Ankit,

TDS should not be deducted on Service Tax portion since it is not an income for the receiver.

All receipts are not income.

Check this link also;

http://www.hinduonnet.com/businessline/2001/07/02/stories/250264lx.htm

Regards,
guru

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Azmathullah Khan

Azmathullah Khan (Expert)
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17 June 2008 But I think, service tax to be added for deducting TDS on Contract and other cases, whereas exclude only for rent u/s. 194i,

Azmathullah Khan

Azmathullah Khan (Expert)
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17 June 2008 Mr. Guru,

The site u have refer is just a news, there is no such GO from IT dept.
If u have any pls sent to me.

CA Abhishek Tyagi

CA Abhishek Tyagi (Expert)
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22 June 2008 Hiring of car should be considered u/s 94C & Hire charges of electirc eqipments will be considered u/s 94I

In a recent notification/circular income tax department clarifies that the tax on rental income should be deducted only on rent portion & not on the gross amount which is inclusive of service tax. On the same footing one can deduct the tax only on the income portion & not on the gross amount.

taxindiaconnect

taxindiaconnect (Expert)
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01 May 2009 There is a difference between hiring of car or hiring of services of car. if the car is hired for full time for a long period with all the maintenance etc being born by the assessee and the car is for specific use of the assessee during the entire period it is the hiring of car as an equipment where as the car is hired only for specific trip only it will be hiring if services of car. In the former case the TDS is to deducted u/s 194I and later case u/s 194C. Except for rent TDS is to be deducted from Gross bill including service tax as the clarification is applicable only for the rent.