Hello to all CCItes
I have one query regarding applicability of TDS :-
One of our client is public transport company. They pays toll charges to toll company when their vehicles (buses) passes municipal limits. In fact, they have made a contract with toll company that both will maintain records of how many buses have crossed the toll points. At month end, they calculate accordingly and our client pays toll charges in bulk. While paying these toll charges, they deduct TDS.
Now, my question is whether TDS deduction is applicable on toll charges payment?
Our client has deducted though. If yes, whether it falls under Sec 194C?
CAclubindia
