13 September 2010
Sir, We have hiring a tractor on rent 1000/- per day please say payment of above is cover in which section and if it is cover in sec 194I than clear in which category it is cover.
The provisions of section 194C shall apply to all types of contracts for carrying out any work including, transport contracts, service contracts,(some professional & technical service contract covered in section 194J now) advertisement contracts, broadcast ing contracts, telecasting contracts, labour contracts, material contracts and works contracts.
"The provisions of section 194C would not apply in relation to payments made for hiring or renting of equipments, etc"
And it very cleast that Hiring of tractors is a case of non agricultural income. therefore, it will be fall in u/s 194 I
Individual / HUF
Please go through both the section for more clearity
CAclubindia
