TDS on rent of genrator

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Sanjiv Kumar Goel (Querist)

04 July 2009 if a person is providing power supply through genrator to a bank or other institution and he is bearing all expenses of genset(diesel and other maintenance cost),what should be TDS rate either 2.06% (194C) or 10.3% (194I).

Ashok

Ashok (Expert)

04 July 2009 The TDS deduction is depend on transaction nature if you are getting Rent from your service provider then the TDS rate will be 10.3% and if you are getting the amount of your service prividing from your client then the TDS rate will be 2%+Surcharge+Edu.cess. The nature of transaction will be clear from the Agreement between the two parties or from the Bill/Invoice.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

04 July 2009 Sec.194I would be applicable.
Nomenclature would not change the nature of transaction.

Sanjiv Kumar Goel

Sanjiv Kumar Goel (Querist)

04 July 2009 I think genset owner bearing the all expenses of genrator and he is only supplying the power and not providing the only genrator (machinery) on rent, so the amount received by genset owner (so called rent)should not come u/s 194I (rent on plant& machinery).
plz...... clarify my opinion