Tds on hiring charges of truck

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Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2014 Our client has acquired truck on rental basis for peaking the goods within the factory premises and unloading the same in other area within the same premises. They pay hiring charges to lender and it is also mentioned in the purchase order but there is no such specific contract between them. The contractor does not issue consignment note but mention on invoice "monthly transporation charges" which is fixed by PO. Our client also reimburses the petrol and oil charges.

My question is whether it is treated as works contract liable to TDS under 194 C or treated as Renting of machinery liable to tds u/s 194 I?

Sandeep Dharar

Sandeep Dharar (Expert)
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18 February 2014 TDS will be deducted u/s 194C (if PAN is not mentioned).

Rent means property is transferred to u & u paid only the monthly rental charges & the other expenses on the assets will b paid by the owner. But as ur client is paying both hence it is treated as Contract.

And the Invoice may b treated as CN.

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