NJ123 (Articles) (36 Points)
29 January 2014Hi,
I want to know is computer and Genset considered as plant and machinery in income tax act for tds purpose I need this clarification because the tds rates on rent (194I) are different for plant and machinery and others.
Also please clarify hire charges for Genset is to be charged under 194I or 194C and this should be decided on what basis.
please reply soon.
CA Kumar Ajay
(Following My Dreams)
(228 Points)
Replied 30 January 2014
I Think Computer & Genset Should Be Covered In Defination of Plant Machinery Equipment.
Also Wait For Others Opinion
Pradeep Gupta
(Accounts Manager)
(298 Points)
Replied 01 February 2014
A) Sec. 194 I states about the deduction of Tax on Rent portion.
Further it is subdivided into 2 parts:-
1) Land/Buildings/Furniture/Fittings
2) Plant/Machinery/Equipments
Therefore Computer and Genset must be covered under Plant/Machinery/Equipments.
B) 194 C deals with contract while 194 I deals with the Rent.
So in the case of Genset, there must be an agreement/contract for hiring.
So to reach at the conclusion whether it should be considered u/s 194C or 194 I, we must check the nature of transaction and the intention of the parties.
Obviously the main intention of the parties is to get the Genset on Rent, therefore TDS will be deductible u/s 194 I.
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