TDS

This query is : Open

ANAND U PATANKAR (Querist)
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24 February 2009 Dear All,

Please let me know whether Dumper , Tractor are considered as Machinery or vehicle as far as TDS u/s 194-I is concerned.

Thanks in advance

Anand

Ram Avtar Singh

Ram Avtar Singh (Expert)
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24 February 2009 The hiring of Machinery/ Vehicke is now subject to TDS u/s 194 I . Under Section 194I , rate of tax for an individual is 15% .If you file your return in status of Individual status, rate of deduction shall be 15% .However, if the rent during the year does not exceed Rs 1,20,000,no TDS has to be done.
Therefore, first see whether with each company you are getting rental above Rs 1,20,000 , if not request them not to deduct the tax.
For your ready reference ,section 194I is given as under

"194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident] any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of
(a) fifteen per cent if the payee is an individual or a Hindu undivided family; and

(b) twenty per cent in other cases :]

ANAND U PATANKAR

ANAND U PATANKAR (Querist)
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25 February 2009 Dear Sir,

My query is related to applicability of section 194-I to plant & machinery & equipment vis-a-vis dumper and tractor in construction industries.
Pl clear whether these are treated as vehicle or machinery while interpreting Section 194-I and its applicability.
CA Anand U Patankar

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