Tds on car hire
This query is : Resolved
03 September 2013
Pls let me know that if a Company hire a car for their customers as sales promotion then what should be the treatment of TDS on car hire....while bill is in the name of Company...
Pls help me to know what will be the treatment of TDS. Whether applicable or not???
Pls help me to know what will be the treatment of TDS. Whether applicable or not???
Hemant Kumar
(Expert)
03 September 2013
TDS applicable on Car hire charges u/s. 194C.
03 September 2013
But basically we are hiring for our sales promotion expenses....is it applicable irrespective of nature of expenses because bill is in the name of Company??
CMA Ramesh Krishnan
(Expert)
03 September 2013
Car hire will apply TDS u/s.194C. you may account the expenses head what ever it may be, nature of expenses covered under TDS
04 September 2013
but I think Sales Promotion Expenditure does not cover/ attract under TDS......and here we are hiring Taxi/ car for the same expenditure....
Hemant Kumar
(Expert)
04 September 2013
Nitesh ji
As per IT sections, TDS attract as per nature of payment, not expenses account head. You have been paid car hire charges, so nature of payment attracts u/s.194C.
Does'nt matter that you have been accounted as sales promotion or admin expense.
As per IT sections, TDS attract as per nature of payment, not expenses account head. You have been paid car hire charges, so nature of payment attracts u/s.194C.
Does'nt matter that you have been accounted as sales promotion or admin expense.
CMA Ramesh Krishnan
(Expert)
04 September 2013
Debiting in difference head is not change the applicability of TDS
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