B.V.K.Nageswara Rao (Manager Finance) (32 Points)
21 January 2009We are hired equipment from vendor, as per contract we reimburse the fuel consumtion by production of actual bills along with hiring charges of the equipment. Pls, clarify is it TDS attracts on fuel charges also. Clarify in which circumstances we need not required to do TDS on fuel expenditure. If any notifications, clarification or circulars from dept pls provide detailes.
Regds
B.V.K.Nageswara Rao
Ph: 099891 57666
Email: nageswararao.bommakanti @ ril.com
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 21 January 2009
Tax has to be deducted u/s 194I from Rent. 'Rent' means any consideration paid for use of equipment. Hence, if re imbursement of fuel expenses is necessary condition for use of equipment, then TDS is applicable on fuel reimbursements. Else, TDS is applicable on Pure Rent portion only.
Chandrashekhar Azad
(Chartered Accountant)
(45 Points)
Replied 22 January 2009
I think he is right, if it is necessary condition for the use of equipment then TDS is applicable.
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