TDS ON HIRING OF PASSENGER VEHICLE

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2010 A CAR HIRING AGENCY HAS BILLED TO A CO. FOR HIRING OF CAR P.M FOR RS 145000.00 AS FOLLOWS
HIRING CHARGES FOR RS 80000.00
DIESEL CONSUMPTION CHARGES FOR RS 65000.00 BASED ON 1 LT/10 KM BASIS AT THE COST OF DIESEL.

Q. WHETHER THE TDS WILL BE DEDUCTED FROM THE GROSS BILL OF THE AGENCY @ 2% ON RS 145000.00 OR ONLY ON HIRE CHARGES ON RS 80000.00 ONLY ? UNDER WHAT SECTION?

YOUR EXPERT OPINION PLEASE ,

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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16 September 2010 TDS under section 194C will apply on the whole amount. For clarification, go to the following link.

https://www.caclubindia.com/forum/tds-on-expense-incured-for-hire-of-vehicle-68788.asp