07 October 2013
please solve my below mentioned query :
Vehicle is hired for business purpose. TDS under which section needs to be deducted?
194C or 194I??
07 October 2013
If you are hiring or leasing vehicles (without the drivers provided by the transport service/ company) for a certain period, then section 194-I will apply. A common example is when companies provide leased cars to their executives or employees or even business guests, they hire or lease cars from car hiring/leasing company. The transport service/company does not provide the drivers, petrol and day to day cleaning and maintenance. The rate of TDS for all with effect from 1st June 2007 is 10.3%, and the surcharge is 1%. Deduct TDS only when the annual rent together with advance rent exceeds Rs. 1,20,000 per annum.
CAclubindia
