We are a limited co. and procured Vehicle (Cars) on Fixed monthly charges from an individual.If the payment exceeded in current F.Y. Rs. 10 Lacs than what will be TDS rate? Whether the rates of TDS will becomes head Rent on Plant and Machinery or comes under head contract work.
8 Replies
CA Naveen Kumar Agrawal
(Chartered Accountant / MBA)
(939 Points)
Replied 20 June 2008
the case will be covered u/s 194-I instead of sec. 194-C.
and the rate of TDS applicble in ur case is 11.33%
rahulbansal
(Accountant)
(51 Points)
Replied 21 June 2008
Dear Frds,
if You do contract with Individual & hire car under sec 194 c than you deducted @ 2.266% (2+10%+3%) as per rate contract. & you don't think abt his income. ok
Ph. no. 41000530 ext. 324. This only advice.
Rajesh khurana
(Practicing CA)
(33 Points)
Replied 21 June 2008
dear friend
your query is related to section 194 I and the rate of TDS will be the rate taken for plant & machinery . so rate of tds will be 11.33% as income is more than 10 lac in case of individual
CA.Sridevi
(Partner)
(878 Points)
Replied 21 June 2008
Sec.194 I only applicable. We have to deduct 11.33% (10% tax+10% surcharge + 3% Education cess)..
CA Anand Sarda
(Working)
(1580 Points)
Replied 30 June 2008
Motor car with driver - then 194 C is applicable
Motor car without driver then 194 I is applicable
Satyendra sahu
(service)
(216 Points)
Replied 01 July 2008
Hi every body,
My question is almost similar, What will be implication of TDS in case of finance lease. Do we need to deduct TDS? If yes, then why?. Because we will be creating asset in terms of AS- 19.
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