An assessee has hired Lift used at construction site. Now my question is in which section TDS is to be deducted i.e. under 194I (Renting of Plat/ofc equipments) OR 194C. Whether the above lift is covered under plant & machinery as defined in sec 194I ?
6 Replies
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 04 June 2015
Lifts r considered as part of building and hence TDS @ 10% u/s 194I. But this is debatable I think.
/experts/depreciation-on-lifts-974725.asp#.VXAmGEazmT8
/experts/asset-head-for-lift-elevator-937595.asp#.VXAnqUazmT8
Ajit Hegde
(CA - Final)
(1367 Points)
Replied 04 June 2015
In my opinion it should be considered as P&M. It is not an essential part of a building. It is installed for the convenience just like AC and other appliances.
Logically it cannot be removed once installed. But the use of, or the lift itself can be removed.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 04 June 2015
@ Ajit: Yeah this view is also right. Thats why I said, it is debatable.
madan
(M.Com)
(28 Points)
Replied 04 June 2015
In my opinion you deduct 194(I), in case rent exceed above 1,80,000/- deduct 10%
RAJ MANE
(self employed)
(30 Points)
Replied 04 June 2015
You are saying that lift hired at construction site, generally lift hired at construction site for lifting bricks sand cement, after completion of contract it it returned to its owener, so long as the lift with us, it is totally under our controll so it should be covered under section 194i and tds should be deducted @ 2 percent
contrary if lift is totally under controll of vendor( owener of lift) then its just like a contract then it would be covered under section 194c.
RAVI JAIN
(Accounts Manager)
(80 Points)
Replied 04 June 2015
This is the case of judicial impasse so the question is debatable.
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