Please clarifiy that a catering company hires bartan for an event, whether TDS liability would be applicable under 194C or 194H?
Thanks in advance
PARESH SHAH
(PARTNER)
(126 Points)
Replied 04 May 2018
Ajay
(CA Job)
(512 Points)
Replied 04 May 2018
Dear Bunty
In my opinion, this will fall u/s 194-I and TDS applicable @ 2%, this being hire charges for an "asset".
Regards
Ajay
Bunty
(123)
(45 Points)
Replied 04 May 2018
Ajay
(CA Job)
(512 Points)
Replied 04 May 2018
Sec.194-I has two rates namely,
Rent of plant and machinery - 2%
&
Rent of land or building or furniture or fitting - 10%.
I think the "bartans" (utensils?) you have hired will fall under "plant" category and thus 2%.
Ashok J
(CA Final)
(880 Points)
Replied 05 May 2018
It should be under 194 I - rent. 194 I is a specific sec. if your transaction doesnt fit into 194 I then consider general section 194C.
Ajay
(CA Job)
(512 Points)
Replied 05 May 2018
PS. It needs to be deducted only if total payments to a single payee exceed Rs.1,80,000 in a year.
CAclubindia
