TDS on Hire Charges for JCB/Tractors & Tenkers etc.
This query is : Resolved
22 December 2010
Please guide us whether TDS is deductible?
please further note that such machinery are not use on continous basis & we do not have any control over on such machinery during the course of operation.
please further note that such machinery are not use on continous basis & we do not have any control over on such machinery during the course of operation.
22 December 2010
Yes tds should be deducted on such rent.
23 December 2010
yes. need to deduct u/s.194I Rent only.
14 June 2011
Thanks for your response,
But the thing is that, we do not having control over the tanker and not able to take possession of the tanker,the owner come and work on hourly basis.In this case provision of TDS Applicable ?
But the thing is that, we do not having control over the tanker and not able to take possession of the tanker,the owner come and work on hourly basis.In this case provision of TDS Applicable ?
27 July 2025
Good point!
Here’s the key distinction:
* **Section 194I** applies to rent for **immovable property** like land, building, or machinery if leased out.
* If you are hiring **machinery like JCB, tractors, tankers**, where you **do NOT have control or possession**, and the owner operates the machinery themselves (like working on an hourly basis), then **this is treated as a service**, not rent.
So in your case:
* Since you do **not have control or possession** of the machinery, and the owner operates it,
* The payment is **for services rendered**, not rent.
### Therefore:
* TDS should be deducted **under Section 194C (Contractual payments for work or services)**,
* **Not under Section 194I**.
---
### Summary:
| Situation | Applicable TDS Section |
| --------------------------------------------------------------------------- | --------------------------------- |
| Hire of machinery where lessee has control or possession (leased machinery) | Section 194I (Rent) |
| Hire of machinery where owner operates machinery (no control by lessee) | Section 194C (Contractor/Service) |
---
If you want, I can help draft a clear note for your records or suppliers explaining this! Would you like that?
Here’s the key distinction:
* **Section 194I** applies to rent for **immovable property** like land, building, or machinery if leased out.
* If you are hiring **machinery like JCB, tractors, tankers**, where you **do NOT have control or possession**, and the owner operates the machinery themselves (like working on an hourly basis), then **this is treated as a service**, not rent.
So in your case:
* Since you do **not have control or possession** of the machinery, and the owner operates it,
* The payment is **for services rendered**, not rent.
### Therefore:
* TDS should be deducted **under Section 194C (Contractual payments for work or services)**,
* **Not under Section 194I**.
---
### Summary:
| Situation | Applicable TDS Section |
| --------------------------------------------------------------------------- | --------------------------------- |
| Hire of machinery where lessee has control or possession (leased machinery) | Section 194I (Rent) |
| Hire of machinery where owner operates machinery (no control by lessee) | Section 194C (Contractor/Service) |
---
If you want, I can help draft a clear note for your records or suppliers explaining this! Would you like that?
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