Difference betw tds on transportation charges and rent a cab

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pahni rajkumar (Querist)
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10 February 2016 Respected Sir,

Please Clarify the below doubt,

New Provision effective June 1, 2015

The new provision of Section 194C, as was informed earlier at the time of the Union Budget, restricts the cases for non-deduction of tax. Non deduction of tax will be available only for small transport operators owning not more than 10 goods carriages.

Is that above provision applicable to Rent a Cab service too?
Or have to deduct the tds on Rent a cab Service for passenger traveling taken by company form proprietaryship ?
If we have to deduct tds on Rent a cab for passenger transportation, What is the Percentage and Section?

Ganeshbabu K

Ganeshbabu K (Expert)
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10 February 2016 Exemption given in 194C(6) is only restricted to goods transport vehicle operator who are eligible for 44AE ,and cannot be applicable for transportation vehicle for passengers,

TDS applicable undersection 194C @1% for individual if single payment exceeds 30000 and total payments in financial year exceeds 75000

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