S M K
(CHARTERED ACCOUNTANT)
(80 Points)
Replied 03 August 2013
Dear all,
The payment to a Operator will attract 194 C and if it is paid to an individual taxidriver then, 194I but mostly the person wont have PAN and a higher rate to be adopted 20%.
And if a company makes payment as travelling expenses to an employee then its only a reimbursement.no TDS attracted. And for personal purposes No tds .So first the question should be clear..
ambuj
(article)
(55 Points)
Replied 03 August 2013
K.T.Antony
(Chartered Accountant)
(68 Points)
Replied 04 August 2013
Mr. Anirban Dev
I have explained 2 scenarios. In which scenario your case fit into.
K.T.Antony
BHAGIRATHI SAMAL
(Article Assistant)
(33 Points)
Replied 21 August 2013
Rajesh is correct.. since as per income tax act, 1961...Plant & Machinery includes Motor cars other than those used in a business of running them on hire..
in the above case, car is hired. therefore TDS will not be applicable u/s.194I which says 2% for the use of any machinery or plant or equipment.
Its a contract and you need to deduct tax under section 194C.
CAclubindia
