29 July 2009
We have deducted TDS @ 2.266 % in respect of payment towards Car Hiring and Crane / Forklift Hiring during the F.Y. 2006-07, 2007-08 & 2008-09. Question - 1) Whether TDS is applicable under Section 194 C or 194 I (Where rate of TDS is 10%) ? 2) For Short deduction whether above said payments is disallowed under section 40(a)(ia) of the Income Tax Act ?