Our company is regulary using some car on hire. However no specific car has been earmeked for our company. Car suppliar can give any car. Driver is also provided by the car suppliar. Car runs as per our requirement. Can any one tell me the under whih section TDS will be applicable i.e 194C or 194J
14 Replies
Balasubramanian V
(Dy. Manager)
(45 Points)
Replied 15 March 2010
Basically it is a car hire, and there is no specific vehicle is being used, only 194C is applicable.
Sekar
(Student)
(197 Points)
Replied 15 March 2010
Under Sec 194C, TDS Should be deducted.If the contractor is individual - 1% , If its a firm or ltd company - 2%.
Kindly correct me, if i'm wrong.
Rupesh Mangilipalli
(Manager -Accounts )
(29 Points)
Replied 15 March 2010
ya its comes under 194C, i agree with sekar
nilesh dube
(Service )
(74 Points)
Replied 15 March 2010
Sec 194C - i ) if the car is in control of the person who provides the car on hire ie the driver is provided by the person who gives the car on hire.
ii) there is contract for some specific work between the car hiring company & the company or the person who provides the car on hire, either oral or written.
In all the above situations the nature of transactions comes in the scope of contract only.As the car hiring company has given some work to the person who provides the car on rent and to perform such work car is being used as a tool for the performance of work.
Sec 194 I - if the car is hired and it is in total control of the person hiring the car for the period for which the car is hired. Here the nature of transaction is that the car is taken on rent & it comes under the scope of "rent for Plant & machinery "and accordingly TDS will be deducted @ 10%
In your case TDS will be deducted under Sec 194C.
DEEPAK
(STUDENT)
(54 Points)
Replied 15 March 2010
it should be come under the 194I . Because under that section it is clearly stated rent of any nature.
we should not consider any terminology but substantial transaction.
CA Priya
(CS Final)
(1049 Points)
Replied 16 March 2010
Hey people....... It should come under 194 I..... Since being in a nature of rent.....Sure.........
Rajat Singhal CA,CS,CFA
(Senior Manager (F&A))
(254 Points)
Replied 16 March 2010
My company is also doing the same, here we had done a contract with the car provider, and he provides us the car with driver whenever we need the same, we are not regularly using the car we are using as as and when there is the requirement for the same, that is why we are deducting TDS under section 194C becoz we dnt had the control on the car the car provider is having the control over the cars, as nilesh had rightly described above.
SUNNY
(STUDENT CS)
(377 Points)
Replied 05 April 2010
IF IT IS UNDER SECTION 194I then the limit should 120000/-
i think it is under 194i there is matter of rent
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