income tax-TDS

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CA. Saurabh Agrawal (Querist)
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21 February 2009 Is TDS is deductible on Buses which is being given on hire basis to schools? & if yes, then under which section will it be deductible. whether Under 194(I) considering buses to be a plant & machinery or 194(C).

K V Subba Rao

K V Subba Rao (Expert)
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21 February 2009 Please check the following link:

http://www.businessline.in/cgi-bin/print.pl?file=2007101551311200.htm&date=2007/10/15/&prd=mn&

In case of buses hired by schools obviously for transport of students from/to home, driver,diesel and maintenance expenditure etc are all borne by Owner of Bus. The Owner (through his Driver) also retains possession of Bus. He operates bus as required by school for an agreed consideration. It appears as though Sec 194C applies.