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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2011 Dear Sir,
A & B belongs to same group
1)Co. "A" financed Trucks from Banks (Owned by "A")
2)Firm "B" use it, earn revenue & pay EMI amt to "A"
3) "A" deposit that EMI amt to bank
Que:-
1)How to reflect these transaction in books, if we don't want to show it as rent(in case of rent both Ser. Tax & TDS will be applicable) & (2) if we show it as rent what will be TDS Rate.

Many Thanks:
Rahul

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 November 2011 In this given case nature , only can be shown as rent or hire charges from B. Service tax & TDS apply.

Service tax 10.30% on hire charges

TDS 2% on Total bill value (Inclusive of ST) U/s.194I

In some state VAT also apply like this nature of transactions. please check the state VAT provisions also

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