Tds deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2012 Dear Sir,

IF tentage service provided like Pandal & Shamiana, funiture etc. on hire basis then at which rate tds should be deducted U/s 94 C (2% or 1% ) or U/s 94 I (2% or 10%)

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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16 July 2012 normally companies deduct TDS on tent services in 194 C

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2012 Sir What is Right 94C or 94I

CA Prashant Gupta

CA Prashant Gupta (Expert)
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16 July 2012 as per my view 194 C is right. because if we study 194 I then we found all things like equipments, machinery are related to production so as per me furniture use in this must be for production use like in factory or office work. but tent services furniture is not covered in this. it will be a contract for all services of Tent. Not only for furniture used. So 194 C is right

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CA ARIHANT JAIN

CA ARIHANT JAIN (Expert)
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16 July 2012 IT IS A CONTRACT FOR SERVICE SO SEC 194C SHOULD BE APPLIES.

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2012 Sir If we hire generator then at what rate TDS would be deducted because It may be considered as Plant & Machinery

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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27 July 2025 Great question! Here’s a clear summary for TDS deduction on these services:

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### Tentage Service (Pandal, Shamiana, Furniture on Hire)

* **Section 194C** applies (Contract for work or services)
* **TDS Rate:** 1% (if payment is to an individual or HUF) or 2% (if payment is to others like companies/ firms)
* Reason: It's a **service contract** and not lease of equipment or machinery.

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### Hiring Generator

* This is usually considered as **Plant & Machinery on lease/rent**.
* So, **Section 194I** applies here (TDS on Rent)
* **TDS Rate:** 2%
* Reason: Hiring of generator is treated as lease of plant/machinery.

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### Summary Table:

| Service | Applicable Section | TDS Rate |
| ---------------------------------- | ------------------ | -------- |
| Tentage Service (Pandal etc.) | 194C | 1% or 2% |
| Hiring Generator (Plant/Machinery) | 194I | 2% |

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If you want, I can help you draft an internal note or explain to your accounts team. Does that help?

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