TDS Rate on Custodial Services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2011 Dear,

we are into business of financing Vehicles. If customer doesn't pay, we repossess the asset for e.g. Cars and keep in Stock Yard...There are Custodial Service charges towards Parking / Storage / Retention of these Vehicles for particular Period by Stock Yard Owner.

We pay to Stock Yard Owners for these Custodial Service chgs in nature of Parking/Storage/Retention of Vehicles.

Whether Stock Yard owner will be treated as Professional / Contractual u/s 194J or 194C i.e. 10% or 2% , what rate of TDS to be deducted.

Kindly confirm.

Guest

Guest (Expert)

09 February 2011 Under Se. 194C.