Pradeep Patankar (IFRS ( London)) (289 Points)
12 August 2011The company has entered in to a contract with a transport company for use of truck for a year for a fixed amount for 5000 kms and for further running Rs.17 per km. but the possesion will remain with the company for the whole time during the contract...
will this contract cover under 194 C or 194 I for the purpose of TDS ?
Ashok kumar
(CA Final)
(587 Points)
Replied 17 August 2011
194C only will applies, because the explanation placed below to the provision to the Section 194I says
“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;
here the track does not covered in this explanation, so section 194C only will apply and not 194I
for more clarity
The expression ‘any work’ used in section 194C means ‘works contracts’ and ‘contracts for work’, i.e., ‘labour contracts’ but not ‘service contracts’ or ‘transport contracts’ - Bombay Goods Transport Association v. CBDT [1994] 76 Taxman 334/210 ITR 136 (Bom.).
- Ashok
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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