Tds on car hire

This query is : Resolved

Nitesh (Querist)
Follow

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???

Hemant Kumar

Hemant Kumar (Expert)
Follow

03 September 2013 TDS applicable on Car hire charges u/s. 194C.

Nitesh

Nitesh (Querist)
Follow

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??

Nitesh

Nitesh (Querist)
Follow

03 September 2013 Pls Clarify the same....

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

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

Nitesh

Nitesh (Querist)
Follow

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

Hemant Kumar (Expert)
Follow

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.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

04 September 2013 Debiting in difference head is not change the applicability of TDS

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now