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TDS on payment for hiring Crane service

22 November 2008

Can any body tell me, tds will be applicable under 194C while making payment (amount Rs. 20000/- above) for Crane service on hire for three days on our site.

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5 Replies

(Guest)

Sec 194C is no longer applicable to Crane HIre Charges since the same is covered u/s 194I - Rent ( Crane being a Machine - Machinery rent has been included u/s 194I ) Hence the threshold exemption limit is Rs.1,20,000/- for T.D.S. @ 11.33% ( 10% + sc(1%) + SHE/EC(.33%) )

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(Guest)

If the Crane is own, but the crane operation is handled by the contractors , then what rate will applicable for tds (i.e. Crane handling charges) . please clarify the same.

(Guest)

Please Clarify whether Tds is deductable or not , while the company regularly paying the amount to Hotels and Travels. If deductable in which rate Tds rate applicable.

Shudhanshu Agrawal (Business) (2570 Points)
Replied 26 November 2008

in case of crane charges paid.....it cannt be taken as rent coz it was used once only......... so willbe taken under Section 194C

Shudhanshu Agrawal (Business) (2570 Points)
Replied 26 November 2008

If company is regularly paying hotels and travels bills then it must be having contract with the service provider......and TDS willbe applicable under Section 194C