TDS on hiring of Machinery (Specific)


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Quick Summary
This discussion clarifies the applicable TDS section when hiring machinery and vehicles on a contract basis. If the contractor covers expenses like fuel, maintenance, and operator salaries, Section 194C is generally considered applicable. This guidance helps businesses correctly deduct Tax Deducted at Source.

13 June 2022 Respected Sir/Mam,
We hired machinery and vehicle on a contract basis. Where exp like fuel-petrol, maintenance, and operator's salary were paid by the contractor. In such a case which TDS section is applicable 194C or 194I? Pls guide

13 June 2022 194C applicable in view of fuel and operator salary included.

13 June 2022 Thank you very much sir


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