TDS on JCB charges charged

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2011 Dear Sir/Madam,
I am company X, and I have entered into contract with company Y for digging a path.

For this company Y will charges me @ Rs. 5000/- per day for use of JCB. The work is of 100 days.

The bill raised on me is Of Rs. 500000/- ( Rs. 5000* 100 days).

Now under which section will I deduct TDS.

please guide

Thanks in Advance

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

31 January 2011 section 194I

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Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2011 will it be at 10% and not in 194C

Guest

Guest (Expert)

31 January 2011 Tax will be deducted u/s 194C

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Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2011 what should I do as on of the expert is saying that it will be deducted u/s 194I @ 10 %, and another is saying u/s 194C @ 2%

Guest

Guest (Expert)

01 February 2011 It is not the simple matter of hiring a machine (JCB) but it is matter contract for diging a path and therefore, 194C only be applicable.

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