Tds on vehicle tracking system

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sagar kulkarni (Querist)
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18 January 2013 Our company has fleet of commercial vehicles running on hire basis(Transport). We have installed the vehicle tracking system from a company who is providing technical services. We have paid a lump sum amount t/o installation of device in vehicle and rental amount of sim card for accessing. Now we are tracking the vehicle through Login Id and Password provided by such company from their web portal. Plz advice me whether i should deduc the TDS @10% u/s 194J or @2% u/s 194I.Its Urgent so plz reply asap.Thank you

chetan soni

chetan soni (Expert)
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18 January 2013 If the device is purchased by our company then there will be no TDS on device amount.

Otherwise for rental charges of the device you should deduct the TDS u/s 194J & for the technical services u/s194J.

For that you must have the invoice which explains the two amount seperately or better two seperate invoice.