Tds on rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2012 Actually am doing audit in a company.It is using vehicles on a rent to directors now my doubt whether company has to deduct tds on such rent @10% or 2%{by treating it as a P&M} .The company is deducting @10% under section 194c but to my way of thinking car has to be treated as P&M and deduct 2%.Please analyse it and clarify my doubt.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 May 2012 You have not mentioned the Section under which 10% TDS is being considered.
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However, your view is correct in this regard.
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U/s 194I the applicable TDS rate for P or M is 2%.
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Further, in case of a contract, applicability of Section 194C also may be seen.
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