The company is going to hire the insulated vehicle. There is contract between vehicle owner and the company to charge fixed amount per month irrespective of the no. of trips. In addition to this, if certain pre-determined kms are crossed, the company will pay extra charges for the excess distance travelled. Expenses including driver's salary will be born by the vehicle owner.
Now the question is whether to make TDS u/s 194C or 194I?
What is the nature of transaction, Contract or Rent?
16 August 2011
Thanks very much. Will it make the difference, if the vehicle is parked in the premises of company when there is no work? I mean to say if there is no order for company, the vehicle will stay in the premises of Company and the transporter can not take the order other than the company.
CAclubindia
