CA Anand Shukla
(CA)
(33 Points)
Replied 30 January 2009
HI... In my opinion u should deduct as contractor u/s. 194c and for supporting it get the invoice changed as showing the invoice for particular work done specifying that work. It will never be feasible to deduct u/s. 194I in case of tractor owner, what he will earn if he is paying 10% directly. Its practical opinion what i've seen people doing in past. thanks.
G.S Reddy
(Article Student.)
(41 Points)
Replied 30 January 2009
Jagdish Bhalia
(Practicing CA)
(453 Points)
Replied 03 February 2009
In my opinion , If tractor is hired on monthly basis then section 194 (I) shall apply.
Madhavendra
(CA Final Student)
(99 Points)
Replied 13 February 2009
It would be safe to deduct at a higher rate if there is no clarity whether it should be 194C or 194I. A lot of cases have come with the department and still clarification is needed.Since Rate if 194i which is 10% plus applicable surcharge if any + 3% cess is more than contact rate, it would be to charge at 194i rate.
Jyoti Malik
(ACCOUNTANT)
(2644 Points)
Replied 06 March 2009
194I Shall apply on this. Rent means any payment by whatever name called under any lease, sublease or any other agreement or arrangement for the use of any:
Madhavendra
(CA Final Student)
(99 Points)
Replied 06 March 2009
TDS Rate is 10.3% because it is use of any 'plant or machinery' and tractor falls within this.
sachin patil
(Accountant)
(102 Points)
Replied 14 March 2009
hello, if you wish it will converte to Subcontract. do a agreement like supply of water or any other material & treat as sub contract.
Vijay
(Profession)
(25 Points)
Replied 14 March 2009
Payment of hire charges for using tractor is a payment for using any plant/equipment as specified u/s194 I . The point is to be considered whether the tractor was taken on hire ealier also and whether any TDS has been deducted by the payer of hire charges on such occasions u/s 194 C or not.If the payments had been made earlier invoking sec 194 C then the assesse should continue to deduct tax u/s 194 C. If this is the first occasion then the assesse should deduct tax u/s 194 I as because it is clearly falling within the ambit of sec 194 I.
Vijay Bhushan Agarwal,kolkata
09831738503
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 15 March 2009
It depends upon the nature of contract.
If you are hiring tractor and paying on the basis of time used, you are hiring a machinaery and 194 I is applicable. However, if you are hiring a tractor and giving payment not on the basis of time, but on the basis of work done, 194C is applicable.
SekharPadala
(Dy. Manager Accounts & Finance)
(36 Points)
Replied 07 May 2009
yaa its correct what he is saying Mr.rajesh kumar.
if you are enguaged tractor through an agreement like water supply,or intercarting,or transportation of materials etc...it wil effected by 194C if you or engaged hire charges for monthly basis or daily basis it will efeccted by 194I because it treated as Machinery.
Thank you,
Sekhar.
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