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TDS. on Van Rent for Workers Transport

SANKARA NARAYANAN (ACCOUNTANT) (57 Points)

18 January 2011

One of my client, rent paid for Van to transport the workers from their house to factory and factory to their house. They are paying 22000/- more per month. Van owners (all are individuals) having pan card, also given the zerox. which section will be cover TDS under 194 C or 194 I? If under 194 I, what is the percentage of tax to be deducted?

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7 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 18 January 2011

See u/s 194i "rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or any building (including factory building), together with furniture, fittings and the land appurtenant thereto, whether or not such building is owned by the payee;

You can deduct tds u/s194I For rent of car. You have to deduct tds u/s 194C.

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SANKARA NARAYANAN (ACCOUNTANT) (57 Points)
Replied 18 January 2011

Sir,

Thanks for your reply.

Can u explain me the following from your reply?

"You can deduct tds u/s194I For rent of car. You have to deduct tds u/s 194C"

Once again i ask my question: Which section will be cover TDS u/s. 194 C or 194 I? If under 194 I, what is the percentage of tax to be deducted?

Pankaj Arora (Learner) (3134 Points)
Replied 18 January 2011

Tds have to be deduct u/s 194c @ 2 % if its company or 1 % if its individual or huf. threshold limit for single bill is 30,000/- and for 75,000/- yearly.