TDS section

TDS 4260 views 21 replies

I think under sec. 194C

Rent on Plant and Machinery is charged under section 194I but JCB  is not plant and machinery so need tocharged under section 194C and one more thing to charged u/s 194I machinery should be in your control.

SECTION 194C APPLICABLE, Because we are paying for the contract charges to contractor,

Dear Pankhil,

As you mentioned that contractor is charging on the basis of number of hours JCB is operated, it is clear that he is charging only for using the JCB. Thus, we can take it as JCB hire charges.

As per my knowledge, TDS will be deducted under section 194I of Income Tax Act,1961.

TDS should be deducted u/s 194C since the contract is for digging the ground and not for hiring machinary.

Dear Sir,

 

 I agred with arun accountant TDS should be deducted u/s 194C since the contract is for digging the ground.becouse contractor submit seprate bill of JBC chages to pary.

Depends upon facts of you case. whenever machinery has been taken on hire with specific job, it would be a works contract and hence all works contract covered by sec 194C. In you case, its a contract for digging a ggroung with contractor. so whether contractor uses machinery JCb or he diggs through his own hands, its totally irrelevant. The basic thrust of the contract is to dig and not to take machinery on hire. hence it would definately covered by scetion 194C and not by 194I.

 

Hope this reolves ur query.

 

Thanks and regards,

Manoj B. Gavali


CCI Pro

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