TDS on GPRS Tracking System on Vehicles

This query is : Resolved

CA Meet Sagarka (Querist)
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25 February 2018 One company provides Vehicles GPRS tracking service to other company therefore which section of TDS will be applied in this service i.e. 194J or 194I. Thanks in advance....

RAJA P M

RAJA P M (Expert)
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26 February 2018 If you gave your device to rental then You can deduct TDS u/s 194I Rent - Plant/Machinery/Equipment... If you are Sell and giving service only then You can deduct TDS u/s 194J - Technical Services...

CA Meet Sagarka

CA Meet Sagarka (Querist)
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26 February 2018 In our case charges are fixed for year on use of GPRS tracking system and there is no written agreement with party in this regard than which section of TDS will apply.

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RAJA P M

RAJA P M (Expert)
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26 February 2018 The Agreement or Charges are not a matter...
How to You supply the Service?

CA Meet Sagarka

CA Meet Sagarka (Querist)
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27 February 2018 They have installed GPRS tracking system on our vehicle for 2 years and for this we are paying charges to them. My question is whether it will be treated as rent or technical fees?

RAJA P M

RAJA P M (Expert)
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27 February 2018 It's treat technical Services...