TDS

This query is : Resolved

pradeep sethia (Querist)
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14 February 2009 The Assessee is dealing in the business of Transporting coal and has entered with the State electricity board for transportation of coal from various ports but the shipping available are not sufficient for the purpose of contract to be executed. Therefore the company hired the ships from other shipping co. and paid the hire charges for the use of ships

So please advice me whether the co.is liable to deduct the TDS u/s194C - please give me the answer with reason so that it will help me to understand the concept.

Please answer me as early as possible

CA Amarpal

CA Amarpal (Expert)
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14 February 2009 Dear Pradeep,

As per the given facts, the company shall be liable to deduct tax on hire charges paid or payable to other shipping company u/s 194I not u/s 194 C.

Sec. 194I covers the hiring of any machinery. Please refer sec. 194I.