TDS on Vehicle Hire
This query is : Resolved
05 September 2007
With the amendment to Section 194 I definition on Rent w.e.f.13.07.2006, the Rent includes Hiring of Plant & Machinery also.
In my opinion, hiring of vehicles i.e., taxi or hiring of a car on a continuous basis does not come under Section 194 I because, the Rent definition does not include 'Vehicles'
I also think Plant & Machinery U/s 194 I does not include Vehicles.
1.Am I correct in this understanding?
Now, with this please clarify me also,
2.Whether TDS on hiring of tractors ( with RTO Regn. ) for removal of waste etc.comes under 194 C or section 194 I?
In my opinion, hiring of vehicles i.e., taxi or hiring of a car on a continuous basis does not come under Section 194 I because, the Rent definition does not include 'Vehicles'
I also think Plant & Machinery U/s 194 I does not include Vehicles.
1.Am I correct in this understanding?
Now, with this please clarify me also,
2.Whether TDS on hiring of tractors ( with RTO Regn. ) for removal of waste etc.comes under 194 C or section 194 I?
06 September 2007
Hire of vehicles(Operating lease/ Finance lease) will fall U/s.194I as pet Taxation Laws Amendment Act, 2006
Shyam Lal Naik
(Expert)
06 September 2007
In a recent case, the Bombay High Court has held that, section 194-I is not attracted in the case of ships, transport vehicles and freight/charter hire payments thereto.
The High Court also opined that the scope of Section 194C covers carriage of goods and passengers, and freight payments are to be dealt with under Section 194C and not Section 194-I.
Hiring of taxi/car etc. is covered under 194C.
The High Court also opined that the scope of Section 194C covers carriage of goods and passengers, and freight payments are to be dealt with under Section 194C and not Section 194-I.
Hiring of taxi/car etc. is covered under 194C.
CA. O.P. Agarwalla
(Expert)
19 November 2007
CAN I GET THE REFERENCE OF jUDGMENT OR A SOFT COPY THEREOF? IF SOME BODY TAKE VEHICLE ON HIRE ON DAYS BASIS, HOW THE SECTION 194C CAN ATTRACT? THERE IS NO INVOLVEMENT OF WORK.
BEFORE GOING FOR FURTHER DISCUSSION, WE SHOULD HAVE A LOOK IN TO THE SAID JUDGEMENT.
BEFORE GOING FOR FURTHER DISCUSSION, WE SHOULD HAVE A LOOK IN TO THE SAID JUDGEMENT.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
