Tds on insulated vehicle hire charges
This query is : Open
16 August 2011
Respected Experts,
I need your opinion on following issue:
The company is going to hire the insulated vehicle. There is contract between vehicle owner and the company to charge fixed amount per month irrespective of the no. of trips. In addition to this, if certain pre-determined kms are crossed, the company will pay extra charges for the excess distance travelled. Expenses including driver's salary will be born by the vehicle owner.
Now the question is whether to make TDS u/s 194C or 194I?
What is the nature of transaction, Contract or Rent?
I need your opinion on following issue:
The company is going to hire the insulated vehicle. There is contract between vehicle owner and the company to charge fixed amount per month irrespective of the no. of trips. In addition to this, if certain pre-determined kms are crossed, the company will pay extra charges for the excess distance travelled. Expenses including driver's salary will be born by the vehicle owner.
Now the question is whether to make TDS u/s 194C or 194I?
What is the nature of transaction, Contract or Rent?
16 August 2011
The possession and control rests with the owner. Therefore, it is a contract with in the meaning of section 194C of the IT Act,1961.
16 August 2011
Thanks very much. Will it make the difference, if the vehicle is parked in the premises of company when there is no work? I mean to say if there is no order for company, the vehicle will stay in the premises of Company and the transporter can not take the order other than the company.
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
- GST Regis.
- Inventory of finished goods
- Sale of property furniture sale
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Disallowance of Section 43B(h) to sez units
- Confusion around Form 26QB fields
- Applicability of Ind As to associate of associate
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Bogus purchase treatment for it act gst dealer
- Company Incorporation - CA and directors signing from different states
- Filing of Form 10BB instead of Filing Form 10B
- HSN Details in IFF/GSTR-1 & in GSTR 9
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
