Tds

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Neha Gupta (Querist)

25 September 2013 If there is a contract of hiring of a DG set on a monthly chargeable basis between Company and a sub-contractor who is an individual, then under which Sec TDS will be deducted, 194C or 194I?
Is TDS to be deducted under 194I @ 1% considering it as an hire of equipment or under 194C @ 2% considering on a contract basis?

Ashwani Narnoli

Ashwani Narnoli (Expert)

25 September 2013 it should be deducted u/s 194I at the rate of 2%

Neha Gupta

Neha Gupta (Querist)

25 September 2013 thanks sir...
what will be the situation if contract is for hiring of vehicle?
Is there any difference in application of TDS if vehicle is used for carrying passenger or equipment?

Ganeshbabu K

Ganeshbabu K (Expert)

25 September 2013 If fuel and maintanance expences for DG set IS borned by contractor and he is collecting fixed sum it is contract and 194C applicable
.
.
where as person who hired DG only paying for fuel and maintanance expences it is taken as rent paid to dg and 194I applicable @ 2%

Neha Gupta

Neha Gupta (Querist)

25 September 2013 What in case of hiring of vehicle?

Ashwani Narnoli

Ashwani Narnoli (Expert)

25 September 2013 Sec 194 I would be applicable.

Neha Gupta

Neha Gupta (Querist)

25 September 2013 Is there any bifurcation depending upon the use of vehicle for application of TDS?
i.e. passenger carrying or equipment carrying.

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