Regarding TDS Deduction on Jeep Hire Charges

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This query is : Resolved

Quick Summary

This discussion clarifies the Tax Deducted at Source (TDS) applicable to hiring jeeps for worker commutation. The consensus is to deduct TDS under Section 194C at a rate of 1%. The query also touches upon TDS for software purchases, clarifying that standard software purchases or license renewals are generally not subject to TDS, unlike customisation or AMC services.

Francis George

Francis George (Querist)

13 September 2023 Hello, Could anyone please help me on the below query

We hired 3 Jeep for our Workers commutation from July . The person providing us the service is an Individual & the bill value from July to September is Rs. 253820/- .
In July month bill amount is around 37000/-, August it is around Rs. 99000/- & for September Bill is 117000/-

Kindly guide us with the Section & Rate that should be deducted?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 September 2023 Deduct 1% TDS under section 194c.

Francis George

Francis George (Querist)

14 September 2023 Thank You Sir.

Will purchase of HR payroll Software of RS.35000/- the service provider is an Individual will this attract TDS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 September 2023 There is no need for TDS on buying a new software or renewing the licence if it's a standard product available to all. But expenses for customisation or AMC will be subject to TDS.

Francis George

Francis George (Querist)

15 September 2023 Thank You very much Sir

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 September 2023 You are welcome..
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