Just wanted to know the tds rate in the following situation:
A company has hired a car from an agency for its employees. The agency sends the car in the morning picks up the employees and stays with the company for the full day. the car is also used for various other official purpose, at the end of the day the car drops the employee. At the end of the month the agency is sending two bills one containing the fixed rental part and the other as a reimbursement of petrol, mobil and driver's overtime expenses according to the kilometers travelled.
What should company do, on what amount the company should deduct TDS and at what rate?
What would be the position if the agency is submitting a consolidated bill for the full amount?
CAclubindia
