TDS on Contract of Machinery Rent

This query is : Resolved

NEERAJ (Querist)
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11 August 2008 Which rate of tds is applicable on contract of machinery rent whether the rate of contract i.e. 2.06% or rent of machinery i.e.10.3% pls reply with such a circular or notification issed by CBDT in this connection

Jitender

Jitender (Expert)
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11 August 2008 rate is 10.3 % as per the amendment in sec 194 I.

CA N RAJA

CA N RAJA (Expert)
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12 August 2008 Please refer to Sec 194I:

It is provided that, while creditng the party or at the time of making payment to the party on account of RENT on machinery or plant or equipment 10% shall be deducted + surcharge (if applicable) + cess.

For the above purpose, rent has been defined as
"any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,—

(a) land; or

(b) building (including factory building); or

(c) land appurtenant to a building (including factory building); or

(d) machinery; or

(e) plant; or

(f) equipment; or

(g) furniture; or

(h) fittings,

whether or not any or all of the above are owned by the payee"

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