TDS on Hire charges

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Sai krishna Medikonda (Querist)
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12 November 2008 I am working in a construction company. we took the vehicles on hire and we are paying the rent on per month (say Rs.15000/-per month). As per the agreement between the vehicle owner and my company, if the vehicle consumes the diesel morethan the specified average, we are deducting the amount for highir diesel consumption (Say Rs.1000/-). Now the company is paying to vehicle owner Rs.14000/-(i.e.15000-1000). Now on which amount TDS is to be deducted? i.e on Rs.15000/- or Rs.14000/-. Please resolve my query.

Thanks & regards

Sai krishna,CA

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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12 November 2008 Only on actual amount due.

O.D.SHARMA

O.D.SHARMA (Expert)
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13 November 2008 TDS to be deducted on 14000/-only.Tghis is on payments only

Sai krishna Medikonda

Sai krishna Medikonda (Querist)
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16 November 2008 Continuation of the above question one more point is

If the vehicle owner uses the vehicle for his personel purpose with company diesel(i.e. If the previos day closing reading of the vehicle does not match with the opening reading of this day, it is assumed that the owner of the vehicle used the vehicle for his own purpose with the company diesel)The company is deducting some more amount for using the diesel(say Rs.1000/-). Now on which amount TDS has to be deducted. i.e on Rs.14000/- or Rs.13000/-.

Thanks & regards
Sai krishna,CA