18 March 2015
A Company has taken computers on hire purchase system from a vendor who in turn has taken it on hire purchase from 3rd party. Now when the Company is making monthly payment as hire charges to vendor then whether TDS needs to be deducted by the Company? If yes then at what rate?
If any case law is available with you then it would be really helpful.
It is payment for hire purchase instalment as mentioned in my query so TDS is not applicable but what is the difference between payment towards hire charges and payment towards hire purchase instalment?
19 March 2015
In a hire-purchase contract the owner delivers goods to another person upon terms on which the hirer is to hire them at a fixed periodical rental. The hirer has also the option of purchasing the goods by paying the total amount of agreed hire at any time or of returning the same before the total amount is paid.