27 April 2014
if a person hiring of motor vehicle means car for travelling and on the monthly basic
then, is the person liable to deduct tds and at what rate 2% or 10%
27 April 2014
if the agreement is for the car only, then it shall be covered under 194-I and tax deduction shall be 2%.
however, if the same also includes items such as petrol charges, driver, maintenance etc, it shall be covered under 194C and rate shall depend on the constitution of the contractor.
(note: deduction is subject to the payments crossing the limits prescribed in the relevant sections).
In any case 10% deduction wont be applicable to this case.
CAclubindia
