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Tds on car hire charges

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08 July 2013 Pls clarify if TDS on car hire charges is to be deducted u/s 194C or 194I.

Thanks.

08 July 2013 IT SHOULD BE DEDUCTED U/S 194c

08 July 2013 Section 194 I.




08 July 2013 Both section can be applied depending on the case. For details see below link---

http://www.simpletaxindia.org/2008/08/tds-on-car-rent-taxi-charges.html

08 July 2013 if car is hired for specific job,..like pick up and drop of staff 194C will be applicable

however if entire control of car was transfer ed means hirer is responsible for maitnainance expences like driver salary,diesel,and repairs...then it is 194I

So 194C or 194I can be ascertained depend on facts of case

09 July 2013 yes in this case it will be sec 194C as rightly said by you.

09 July 2013 Tushar Ji if car hired for pickup and drop facility its perquisites in the hands of employee but when employer makes payment to car owner it will attract TDS u/s 194C since the car was taken for a specific job and element of contract is there.

09 July 2013 Dear All,

Thanks for the responses. In my case the car is being hired for employees for travelling on official travel / tour as when required. There is no fixed schedule. The car is called for as when required.




09 July 2013 So it is seen as specific agreements and we cannot deduct tds under SEC194I and hence 194C will be applicable..

So TDS 194C WILL BE APPLICABLE

Please note..

If the bill is in the name of company you need to discharge service tax under reverse charge also.

Reverse charge applicable if you are company or LLP and Service Provider should be HUF, Individual, firm.

Thanks & regards
Ganesh babu k



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