Tds on hire charges
This query is : Resolved
tukuna sahoo
(Querist)
22 January 2014
Whether hire charges paid to fastrack taxi on monthly basis attract TDS U/S 194C or 194I. Petrol expenses is borne by Assesse co..driver is provided by fastrack taxi co... No maintenance is paid by assesse co????
AVTAR SINGH
(Expert)
22 January 2014
Deduct TDS u/s 194C on the amount paid/credited.
tukuna sahoo
(Querist)
23 January 2014
But it is taken on hire basis. Co has taken the possession of vehicle it is not availing the service.
AVTAR SINGH
(Expert)
23 January 2014
If running & maintenance expenses like petrol, repair etc. has been incurred by the person who has hired the vehicle then it should be covered under section 194-I.
The main paper which will decide the issue is contract agreement and issue will be decided mainly on the basis of the term of agreements.
Whenever the control of vehicle remains with the owner of the vehicle then it generally means that vehicle is for specific job and not hired as such, so deduction should be under 194C .but some times vehicle with drivers are also hired without specific jobs in that case person who has hired the vehicle can travel on it any where though there may be some restriction but point is that no specific job has been assigned, so in this case it will be covered under section 194-I.
The main paper which will decide the issue is contract agreement and issue will be decided mainly on the basis of the term of agreements.
Whenever the control of vehicle remains with the owner of the vehicle then it generally means that vehicle is for specific job and not hired as such, so deduction should be under 194C .but some times vehicle with drivers are also hired without specific jobs in that case person who has hired the vehicle can travel on it any where though there may be some restriction but point is that no specific job has been assigned, so in this case it will be covered under section 194-I.
tukuna sahoo
(Querist)
24 January 2014
Thank you for your valuable guidance sir.
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