Applicability of tds on cold storage charges u/s 194c or 194i & rate of tds

An Limited Company keeping their agricultural items (Onion, Garglic & other agricultural produced) in cold storage of an private Limited Company & paying cold storage charges / rent on per kg basis. 

CBT Circular No. 1/2008 dt 10.01.18 and explanation (1) of Section 194I are creating confusion regarding applicablity of TDS Section & rate of TDS.

So, please let me know applicability of TDS u/s 194C or 194I & rate of TDS.

Mohan Jain

Mob. No. 9755354773

Email ID: jain_mohan @ yahoo.co.in

 

Replies (3)

As you are paying remuneration on Kg. basis, its not rent; but storage charges and hence as per circular no. 1/2008, TDS u/s. 194C will be applicable.

section 194C applicable in this case
  1. Section 194C is applicable 
  2. TDS Rate 2% as the cold storage is of a private limited company (as described in your query)

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