Pls clarify if TDS on car hire charges is to be deducted u/s 194C or 194I.
IT SHOULD BE DEDUCTED U/S 194c
Both section can be applied depending on the case. For details see below link---
if car is hired for specific job,..like pick up and drop of staff 194C will be applicable
however if entire control of car was transfer ed means hirer is responsible for maitnainance expences like driver salary,diesel,and repairs...then it is 194I So 194C or 194I can be ascertained depend on facts of case
yes in this case it will be sec 194C as rightly said by you.
Tushar Ji if car hired for pickup and drop facility its perquisites in the hands of employee but when employer makes payment to car owner it will attract TDS u/s 194C since the car was taken for a specific job and element of contract is there.
Thanks for the responses. In my case the car is being hired for employees for travelling on official travel / tour as when required. There is no fixed schedule. The car is called for as when required.
So it is seen as specific agreements and we cannot deduct tds under SEC194I and hence 194C will be applicable..
So TDS 194C WILL BE APPLICABLE Please note.. If the bill is in the name of company you need to discharge service tax under reverse charge also. Reverse charge applicable if you are company or LLP and Service Provider should be HUF, Individual, firm. Thanks & regards Ganesh babu k