TDS on Hiring of Bus Taxi

Page no : 2

Ritesh Jain (CA, CS in Job) (675 Points)
Replied 29 March 2011

Originally posted by : santosh
	Dear, Gaurav, If u r hiring a bus for the business purpose and there is a agreement for that, than TDS should be deducted u/s 194I If u r hiring a bus on occasional basis without any agreement, than in that case TDS should be deducted 194C

Business or occasional purpose is not at all segregation barrier for deriving the nature of agreement.

First of all, it should be for business for attracting TDS provision..it can be occasional or continuous.

Regards,

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Maheshkumar Sharma (CA) (134 Points)
Replied 29 March 2011

section 194 I is applicable for rent @ 1 %.

ajay. (Service) (25 Points)
Replied 29 March 2011

Pls tell the TDS on Hire Charges of Genset ,bill including Rent Charges + VAT.

CA Saiyum khan (Practicing CA) (690 Points)
Replied 29 March 2011

In my view explanation of CA Ritesh make sense. So one should extract demacation line between 194C and 194I on going through the contract carefully.

CA Saiyum khan (Practicing CA) (690 Points)
Replied 29 March 2011

Originally posted by : ajay.
	Pls tell the TDS on Hire Charges of Genset ,bill including Rent Charges + VAT.

194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to ⁷¹[a resident] any income by way of rent⁷², shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, ⁷³[deduct income-tax thereon at the rate of—

⁷⁴[(a) two per cent for the use of any machinery or plant or equipment; and

(b) ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:]]