Hi Friends, I wish to know if company have a contract for car hiring for 2 years for Rs.3 Lakh for a year. should the company liable to deduct tax as per 194I (TDS Rent - as car is considered as machinery) or as per 194C (TDS Contract as this is a contract for providing services), Thanks - Gyan
7 Replies
Amit Sharma
(article)
(2677 Points)
Replied 02 April 2008
Its should be dedcuted u/s 194C- Contractors. Deducted @ 2.266% on the amount.
Somebody
(IT Consultant)
(126 Points)
Replied 05 April 2008
hey everybody. this is a metter of Renting a machinary (194 I) - NOT a transport contract (194C). The rate u/s 194 I is 10 % + SC if applicable + EC. Dear Gyan, now i think your doubt is clear. my reply is same as it was on LawyerClub - yer there is correction is rates.
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