Tds on travelling expenses
This query is : Resolved
Vaibhav Jandey
(Querist)
27 September 2014
Respected Experts,
We hire a cab to travel from Pune to Mumbai cum return journey, the cab owner obviously provides driver with the same.
Should we deduct TDS on it, kindly quote the provisions of income tax law.
As of now I know that we don't deduct tds on the same but I don't know it by law but by practice.
We hire a cab to travel from Pune to Mumbai cum return journey, the cab owner obviously provides driver with the same.
Should we deduct TDS on it, kindly quote the provisions of income tax law.
As of now I know that we don't deduct tds on the same but I don't know it by law but by practice.
27 September 2014
TDS should be deducted u/s 194C. Who said we dont deduct TDS on this? TDS is always deducted on Rent a Cab services u/s 194C.
Vaibhav Jandey
(Querist)
27 September 2014
Thank you for your reply sir,
Have you mistakenly quoted "194C" since rent is specified u/s 194I ?
Have you mistakenly quoted "194C" since rent is specified u/s 194I ?
27 September 2014
No. Section 194C only will apply. You are not paying rent for vehicle you are paying for Rent a Cab service which includes services of driver as well.
Vaibhav Jandey
(Querist)
27 September 2014
Ok thank you sir.
Ganeshbabu K
(Expert)
28 September 2014
If driver and vehicle maintenance also borned by you then it is convincing to do 194I
.
.
So. as said by above expert TDS required to deduct under section 194C
.
.
.
.
So. as said by above expert TDS required to deduct under section 194C
.
.
Vaibhav Jandey
(Querist)
29 September 2014
Thank you for your reply @Ganeshbabu
1. In one case we decide the fare before journey say 5500 for to and fro.
2. Another we pay as per kilometeres run basis e.g. Rs. 20/km. and this includes everything even driver's salary.
Kindly clarify.
1. In one case we decide the fare before journey say 5500 for to and fro.
2. Another we pay as per kilometeres run basis e.g. Rs. 20/km. and this includes everything even driver's salary.
Kindly clarify.
30 September 2014
In both the given cases section 194C will be attracted.
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