Tds on rent of four wheeler given by partner to firm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2013 A partner as per agreement gave his personal vehicle on rent to his partnership firm for Rs.2,16,000/- annually. Shall TDS be deducted on the same? If yes then why? Please Explain

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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01 September 2013 yes. can be deducted TDS u/s.194C

ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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11 October 2013 sir it will be deducted u/s 194-H

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 October 2013 why it will come under 194H

ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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14 October 2013 Hire charges deducted u.s. 194H

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 October 2013 Sec.194H deals with TDS on commission & brokerage

ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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16 October 2013 sorry sir 194-I i was saying

ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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16 October 2013 TDS on hire/Rent charges builing and land @ 10 % and other @ 2 % ( section 194-I)

180000 exemption limit is here.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 October 2013 Hi. 2% which prescribed for plant & machinery or equipment. Vehicle is not comes under plant & machinery or equipment, it is normal contract so can be deduct u/s.194C is my opinion

ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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16 October 2013 Car-hire falls under renting of machinery and, hence, covered under Section 194I. Prior to the amendment, the definition of ‘rent’ did not include rent for machinery. Hence, prior to 2006, car-hire was not covered under Section 194I.

ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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16 October 2013 if a car is leased for, say, a year and is under the control of the company and it is the firm responsibility to run and maintain it, the payment would be in the nature of rent and Section 194-I would be applicable.

194 I becouse there is no Service contract.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 October 2013 Please refer citation

Ahmedabad Urban Development Authority vs. ACIT (ITAT Ahmedabad) ITA No.1 637/Ahd/2010 (A. Y.: 2009-10)

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ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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16 October 2013 http://law.incometaxindia.gov.in/dittaxmann/incometaxacts/2005itact/cirsec194c.htm

ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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16 October 2013 sir tell me other question anwer. due to NIL Turnover firm/Individual have Rs. 22 Lacs Loss. Can I filed Return U/S 44AB-without auding, 44AD- Prasamptive income and u/s 44AA-without mainaing books of accounts

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 October 2013 you cannot file under sec.44AB since the turnover is Nil and also you are unable to go for sec.44AD since declaring loss. you can go for normal provision with maintaining minimum requirement of books. but your query related to AY-13-14, then that also no use. since the return filling date is over, you cannot claim the loss and carry forward in the return. you can file just nil return

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