Tds for commercial equipment hire charges

This query is : Resolved

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TDS on equipment hire depends on contract nature. Under Section 194C, TDS is 1 percent for individuals or HUF and 2 percent for others. If hiring plant and machinery like JCB or crane with control, TDS applies under Section 194I at 2 percent.

moorthy

moorthy (Querist)
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19 November 2013 Please let me to know the TDS % for Commercial Vehicle hire charges (Tractor, JCB, Crane) U/C 194C

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)
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19 November 2013 Under Sec 194C, TDS rates are:
Where the service provider is an individual/ HUF - 1% and
Where the service provider a person other than an individual/ HUF, i.e firms, com panies etc. - 2%

However, please note:
TDS for Hiring of JCB, Crane is to be deducted u/s 194I @ 2% as the same is in the nature of Hiring of Plant and machinery.

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sharma.ctc@gmail.com

sharma.ctc@gmail.com (Expert)
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03 March 2015 It is not clear from querry that whether you have hired a crane or you have entred in contact. If the assests is in your control and you are oprateing the same then it will covered U/S 194I and if you have given some work to a contractor and the control of assests is also with him then it will covred U/S 194C

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