tds on hiring charges of buses

This query is : Resolved

CA Abhash (Querist)
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06 February 2008 under which section the tds on hiring charges of buses should be deducted- whether under sec 194c or 194i. what interpretation i am deriving is sec 194i asks for decuction of tds on plant & machinery and income tax act has recognised 4 broad categories of assets:- land, plant & machinery, furniture & fixtures and buildings.so buses fall under plant & machinery category & consequently tds should be deducted under 194I not 194C

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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06 February 2008 If you are taking a particular bus on hire for a period witout the driver then your stand of 194I may be correct. But if you are hiring a bus with a driver for isolated trips, then it may fall under 194C. I invite further debate on this by our learned friends.

R.V.RAO

R.V.RAO (Expert)
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06 February 2008 SEC 194 C REFERS TO ANY PARTICULAR CONTRACTUAL TDS DEDUCTION WHERE AS 194 I REFERS TO TDS ON RENT FOR HIRE OF LAND, PLANT, EQUIPMENT ETC...
AS PER IT DEPT CIRCULAR IT IS NOT NOMINCLATURE BUT ESSENCE OF THE CONTENTS OF AGREEMENTS WHICH DECIDE TAXABILITY.
I AGREE WITH SRI SRINIVASARAGHAVAN.
R.V.RAO