26 February 2008
W.e.f. 13-July-06 Scope of Section 194I has been extended to cover any rentals payable on equipment by the company.
Is vehicle which is a capital asset does fall within the definition of Equipment and hence any lease rentals payable to leasing company will attrack TDS deduction under Section 194I?
26 February 2008
Will lease rentals payable for vehicle fall under the definition of equipment since company is not into a business of running vehicle on hire? Pl see below the definition of Rent covered under 194I
Explanation.—For the purposes of this section,— (i) “rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,— (a) land; or (b) building (including factory building); or (c) land appurtenant to a building (including factory building); or (d) machinery; or (e) plant; or (f) equipment; or (g) furniture; or (h) fittings, whether or not any or all of the above are owned by the payee.”
26 February 2008
SINCE THE DEFINATION OF PLANT INCLUDES VEHICLES ,AND ON LEASE RENT OF PLANT TDS IS REQUIRED TO BE DEDUCTED THERFORE ON VEHICLE TDS IS REQUIRED TO BE DEDUCTED
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