Tds on crane hire charges

This query is : Resolved

Quick Summary

TDS on crane hire depends on nature. If hired without operator, Section 194I applies at 2 percent. If with operator or for work contract, Section 194C applies at 1 percent or 2 percent based on payee.

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2011 On Crane Hire Charges, TDS on what rate & under what section to be deducted.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 December 2011 If its taken on fixed rental basis without operator sec 194I will be applicable. Rate of TDS 2% otherwise sec 194C will be applied but rate will remain same in both the cases.

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Sanjana

Sanjana (Expert)
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15 December 2011 Rate will not remain same in both cases. Under Section 194I Rate would be 2% and under Section 194C,if the payee is a Company/Partnership Firm rate would be 2% else it would be 1% for Individual/HUF

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Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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15 December 2011 i am Agree with Sanjana

Abhishek Ranjan Singh
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Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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15 December 2011 First time i am disagree with Sanjay, I am big fan of his on CA Club.
You Can See following link about this amendment
https://taxguru.in/income-tax/amendment-in-tds-rates-and-provisions-us-194c-194i-of-the-income-tax-made-in-finance-budget-2009-2010.html

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 December 2011 Mistake Accepted. TDS rate will remain same only if the deductee is other than Individual/HUF.

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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17 December 2011 @ Sanjay this is sign of a great person.

Yogesh Agarwal

Yogesh Agarwal (Expert)
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26 December 2016 What if hire charge is based on hourly basis. Work is done or not does not make any difference on hire charges. Can you advise what would be section applicable. I do not bother for rate of TDS. Also hire charge include operator.