Tds on care hire

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VINAYAK GORHE

VINAYAK GORHE (Querist)
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11 June 2015 IF FIXED MONTHLY CHARGE IS PAID FOR CARE HIRE ,TDS TOBE DEDUCTED UNDER 194I OR 194C

JUGAL PATEL

JUGAL PATEL (Expert)
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11 June 2015 Section 194C defines “work” to include “carriage of goods and passengers by any mode of transport other than railways” while Section 194-I defines “rent” to mean payment for use of “plant” (which is defined in Section 43 to include vehicles). As the cars were owned and maintained by the contractor and all expenditure was borne by the contractor, the contract was for “carriage of passengers” for which the assessee paid a fixed amount. Therefore, the payment of vehicle hire charges fell within the scope of Section 194C and was not “rent” for Section 194-I. Ahmedabad Urban Development Authority vs. ACIT (ITAT Ahmedabad) - See more at: http://taxguru.in/income-tax-case-laws/vehicle-hire-charges-falls-scope-section-194c-section-194i.html#sthash.tivdrskJ.dpuf

Arpit Shah

Arpit Shah (Expert)
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11 June 2015 http://www.simpletaxindia.net/2008/08/tds-on-car-rent-taxi-charges.html

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Rupesh Jain

Rupesh Jain (Expert)
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11 June 2015 IF YOU CAR TAKING CAR W/O DRIVER THEN COVNER UNDER 194i,

AND WITH DRIVER THEN 194c

RahulMehta

RahulMehta (Expert)
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11 June 2015 Since plant includes Vehicles also as per definition u/s 43(3), and 194i can be deduction on rent paid for plant.

Therefore if vehicle is hired without driver(i.e. Full control over asset hired) then 194I will be attracted, else 194C.