Tds query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2011 Forklift hiring charges for Mfg Co. (concerned with production) Amt Rs. 38000/- for the month of April.
My Query is that
1. Is liable for TDS ?
2. If yes, in which section i.e. 94C or 94I
3. Is it direct expense ?
4. Which kind of expense will reflect for it. Hiring charges or any other like loading unloading.

Regards,

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 September 2011 1) Yes
2) If you are only hiring the machine the Sec 194I is attracted. If operator is also provided by the party then Sec 194C.
3) Direct Expenses
4) Loading/ Unloading Expenses.

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2011 thanks, but my next querties for the above points are,

For 2nd point.
We have a bill provided by party, then which section will applicable for TDS.

For 4th point.
How loading & unloading shall applicable for 94I.Because generally it is concerned with 94C.

Regards,

Querist : Anonymous

Querist : Anonymous (Querist)

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 September 2011 Regarding 2nd Point--

Bill provided for what? You have not mentioned operator is provided by them or not?

In case it is rent bill / Hiring Charges Bill then TDS will be deducted u/s 194I @ 2%. If the bill is for service or some other charges which includes labour provided to operate the machine then TDS will be deducted u/s 194C.

Regarding 4th Point--

Yes if 194I is applicable then it Booked as Machinery Hiring Charges. If 194C the Loading unloading charges.

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2011 My next query reg point 2

Party have mentioned "Forklift (Machine) Hiring charges for the period 01/04/11 to 30/04/11" only then which section will applicable for tds.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 September 2011 Section 194I will be applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2011 Thanks sir..........

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