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TDS on Car Hire

Gyan Mishra (Service) (48 Points)

02 April 2008

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

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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.

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CA. Kirti S. Ganatra (Service) (1461 Points)
Replied 02 April 2008

2.06%

vishnukant (Accounts) (69 Points)
Replied 02 April 2008

10.30% u/s 194I

(Guest)

TDS should be deductable u/s 194c for contractor @ 2.06%

(Guest)

TDS should be deductable u/s 194c for contractor @ 2.06%

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Pankaj Garg (Service) (45 Points)
Replied 04 April 2008

TDS will be deducted U/s 194C not U/s 194I

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.