Respected Experts,
Kindly give your valuable advice:-
Two persons are running a partnership firm of "Supply of Tangible Goods Services" to the factories and the firm use to borrow the vehicle and machine on hire basis from different vehicle owner on monthly basis, and use to supply the same to the different factories and charges service tax under head "Supply of Tangible Goods Services", from the factories and deposit the same @ 12.36%.
My question is
1) should the firm deduct TDS while making payment to the actual owner of the Vehicle/Machine.
2) at what percent the TDS should be deducted and u/s which section.
3) Is it mandatory to take a TAN Number.
4) When it become mandatory to opt TAN.
5) The actual owner of the Vehicle/Machine are giving the vehicle/machine to the Partnership Firm, not to the factories, then under such circumstance what should be the legal boundation of the Actual owner, should they also charge the service tax to the PARTNERSHIP FIRM or not.
please do reply its urgent.
thanking you in advance.
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Tds
I dont think that TDS is applicable ,as long as you supply only the vehicle and do not provide loading and unloading and like service along with it.
Relevant S is 194C
When to obtain TAN?
S.203A. (1) Every person, deducting tax or collecting tax in accordance with the provisions of this Chapter, who has not been allotted a tax deduction account number or, as the case may be, a tax collection account number, shall, within such time as may be prescribed [See rule 114A] , apply to the Assessing Officer for the allotment of a "tax deduction and collection account number" .
When you have purchased the property on hire purchase then hire purchaser is treated as the owner of the asset. There are similar provisions in service tax and income tax.
They should charge ST from you only and not from your clients.
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