Car hire charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2010 Our company paid car hire charges to the party in each and every month but the hire charges are not same in every month so in that case whether TDS should be deducted U/S 194 C OR 194I.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 July 2010 TDS to be deducted u/s 194C.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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20 July 2010 agreed, TDS on Car Hiring charges will be deducted u/s 194C as contract.

CA Ujjaval Desai

CA Ujjaval Desai (Expert)
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01 August 2010 The following Consideration should be taken into account for deciding of TDS liability u/s 194I or 194C

1)If the agreement is for leasing of the car, the payment would attract tax deduction under Section 194-I.

However, if the agreement is for a service of transportation to be provided by the agency, the payment would attract tax deduction under Section 194C (the definition of the term ‘work’ includes inter alia carriage of goods and passengers by any mode of transport).

2)If the car is under the control of the co. then in that case tds would be deducted u/s 194I and if the car is under the control of Agency then tds would be deducted u/s 194C

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