Tds on xerox m/c hired

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SYED HABEEB

SYED HABEEB (Querist)
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03 January 2013 Dear Sir

Please confirm whether TDS Needs to recover on Photocopy charges

srinivasan

srinivasan (Expert)
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03 January 2013 The Photo copier is being rund under different types of contract.
If the rent is paid on the machine and the machine is operated by you, then it will fall under leasing of office equipment and liable to tax u/s 194 I as rent.
If the operator is also provided with the machine and you avail the services then it would partake the nature of contract for works. The position would not change irespective of whether the paper is supplied by you or the service provder. And in such cases the TDS would be u/s 194C.

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CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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03 January 2013 Yes, TDS U/s 194I is applicable if xerox machine is hired from the vendor for rent.

However, TDS u/s 194C is applicable on photocopy charges which is covered under work contract for maintenance of xerox machine.

In your case, both TDS u/s 194I and 194C are applicable.
Section 194J for hiring of xerox machine and section 194C for maintenance of xerox machine for which the vendor charging monthly photo copy charges.

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