Tds applicability on vehicle hire charges
This query is : Resolved
CA Pratik Sirwani
(Querist)
07 October 2013
please solve my below mentioned query :
Vehicle is hired for business purpose. TDS under which section needs to be deducted?
194C or 194I??
07 October 2013
If you are hiring or leasing vehicles (without the
drivers provided by the transport service/
company) for a certain period, then section 194-I
will apply. A common example is when
companies provide leased cars to their executives
or employees or even business guests, they hire
or lease cars from car hiring/leasing company.
The transport service/company does not provide
the drivers, petrol and day to day cleaning and
maintenance. The rate of TDS for all with effect
from 1st June 2007 is 10.3%, and the surcharge
is 1%. Deduct TDS only when the annual rent
together with advance rent exceeds Rs. 1,20,000
per annum.
drivers provided by the transport service/
company) for a certain period, then section 194-I
will apply. A common example is when
companies provide leased cars to their executives
or employees or even business guests, they hire
or lease cars from car hiring/leasing company.
The transport service/company does not provide
the drivers, petrol and day to day cleaning and
maintenance. The rate of TDS for all with effect
from 1st June 2007 is 10.3%, and the surcharge
is 1%. Deduct TDS only when the annual rent
together with advance rent exceeds Rs. 1,20,000
per annum.
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