TDS on Vechile Hiring


This query is : Resolved 

23 January 2010 Dear All,
Please clearify someone that we (A public ltd co) have hired an innova (taxi) for our staff to drop at Plant and return back to home. And vehicle stationed at our Plant during office hours. So at what rate we have to deduct TDS from contractor ? and why ?

Best Regards
Mukesh

23 January 2010 TDS u/s.194C as its a contract to drop and come back, clear understanding and condition to execute.

23 January 2010 Please clear , this is not saisfy.

Mukesh


23 January 2010 as per my understanding your company has hire a taxi for staff and this is regular basis i.e. daily pick staff and drop at night.
if this is the case it is a clear contract so it will be dealt in 194C.
if you are paying to an individual or HUF than tds rate is 1% otherwise it is 2%


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