TDS on Dashcam rent and allied services

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This discussion clarifies the Tax Deducted at Source (TDS) applicable to hiring dashcams and associated fleet management services. The core question is whether to deduct TDS under Section 194I for hardware rental or Section 194J for technical services like driver behaviour alerts. If the invoice is bundled, the dominant purpose of the contract, likely technical services under 194J, will determine the applicable section and rate (2% or 10%).

Ravi Konda online

Ravi Konda online

(Querist)

22 October 2026 Our company has decided to hire dashcam on rental basis from a it solution company which is specialised in providing solution related fleet services.

Apart from Hiring of dashcam ,realtime access of data caputered by Dashcam will be available,it will give alerts such as Driver is facing fatigue,overspeeding & other issue inshort it will facereading of driver behaviour

Now my question under which section TDS should be deducted for such type services?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

22 October 2026 Review the master service agreement (MSA) or vendor invoice structure. If distinct components exist, apply 194I for hardware rental and 194J for technical alerts; if bundled, apply the section matching the dominant objective of the contract (usually 194J for advanced AI-enabled fleet solutions).

Ravi Konda online

Ravi Konda online

(Querist)

22 October 2026 We receive one single invoice on monthly basis and also details are not mentioned separately,my question if we want to deduct tds U/S 194J the rate would be 2% or 10% please clarify

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