914 i vs 194 c
This query is : Resolved
30 December 2013
Dear All,
Please confirm on the following:
Car Hire Charges:
We have taken a car for hire from a subsidiary company against which fixed rentals will be paid . Driver, Fuel , Maintenance taken care by the Holding company, Subsidiary gets only monthly rentals now is it 194 I 0r 194 C.
2. Rentals for photo copier machine:
We have hired Photo copier machine. As per the contract owner gets amount like 0.25 per copy, cartridge gives by owner and parer provides by company. Now is it 194 I or 194 C for company.
I know tax rate is 2% but still matter of select correct code I am asking.
Please confirm on the following:
Car Hire Charges:
We have taken a car for hire from a subsidiary company against which fixed rentals will be paid . Driver, Fuel , Maintenance taken care by the Holding company, Subsidiary gets only monthly rentals now is it 194 I 0r 194 C.
2. Rentals for photo copier machine:
We have hired Photo copier machine. As per the contract owner gets amount like 0.25 per copy, cartridge gives by owner and parer provides by company. Now is it 194 I or 194 C for company.
I know tax rate is 2% but still matter of select correct code I am asking.
30 December 2013
I would say rental in case one. can contract in case 2.
30 December 2013
TDS under section 194 I in case one..
TDS under section 194C in 2...
TDS under section 194C in 2...
30 December 2013
Agreed with above experts view.
31 December 2013
Thanks all of you for inputs.
But it would be highly appreciated if provide the relevant support material.
But it would be highly appreciated if provide the relevant support material.
31 December 2013
see in case 1, you are taking a vehicle on rent with a fix rental amount and rest all the expenses are yours. It is more in the nature of rent. therefore 194I. In this case had you took the vehicle on the basis of payment for per km, it could have been considered as 194C.
Whereas in case 2, the payment is more or less linked to the usage (per paper payment), which assumes nature of a contract. Therefore 194C.
Whereas in case 2, the payment is more or less linked to the usage (per paper payment), which assumes nature of a contract. Therefore 194C.
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