Whether car hire comes under 194 i or 194 c?

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nitin rajiv rane (Querist)
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18 December 2012 If a company often hires car from a same individual as and when required ( the vehicle is not hired for specific period) then this kind of transactions will comes under 194 C or 194 I or it will neither covered under any of these section ?

@VaibhavJ

@VaibhavJ (Expert)
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18 December 2012 hi

definitely u/s 194C.

pl refer link for clarity: http://www.simpletaxindia.net/2011/05/tds-on-hired-vehicle-on-fixed-amount.html

thanks

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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18 December 2012 Vehicle hire charges falls within the scope of Section 194C not under section 194I.
Ahmedabad Urban Development Authority vs. ACIT (ITAT Ahmedabad)-ITA No.1 637/Ahd/2010 (A. Y.: 2009-10)

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@VaibhavJ

@VaibhavJ (Expert)
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18 December 2012 thanks amit for case law.

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nitin rajiv rane

nitin rajiv rane (Querist)
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18 December 2012 what if company does not make fixed monthly payments for hiring vehicles. The payment made to individual varies according to the trip executed whenever required and there is no expressed contract between the concerned parties. Then what will be your answer?

@VaibhavJ

@VaibhavJ (Expert)
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18 December 2012 For application of s/194 C expressed contract is not required, once threshold limit is exceeded TDS to be deducted.

thanks