16 June 2008
T.D.S is deducted on entire payment including service tax. t.d.s on car hiring is deducted u/s 194C Whereas T.D.S on hiring of other plant and machinery is deducted u/s 194I
22 June 2008
Hiring of car should be considered u/s 94C & Hire charges of electirc eqipments will be considered u/s 94I
In a recent notification/circular income tax department clarifies that the tax on rental income should be deducted only on rent portion & not on the gross amount which is inclusive of service tax. On the same footing one can deduct the tax only on the income portion & not on the gross amount.
01 May 2009
There is a difference between hiring of car or hiring of services of car. if the car is hired for full time for a long period with all the maintenance etc being born by the assessee and the car is for specific use of the assessee during the entire period it is the hiring of car as an equipment where as the car is hired only for specific trip only it will be hiring if services of car. In the former case the TDS is to deducted u/s 194I and later case u/s 194C. Except for rent TDS is to be deducted from Gross bill including service tax as the clarification is applicable only for the rent.
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