TDS RATE

This query is : Resolved

CA Abhishek Singh (Querist)
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17 March 2009 DEAR ALL
ONE OF OUR CLIENTS(INDIVIDUAL/FIRM) IS HIRING MOTOR CAR TO A COMPANY. AT WHAT RATE TDS SHOULD BE DEDUCTED BY THE COMPANY IN A.Y 08-09 & 09-10

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)
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17 March 2009 2.06%

K V Subba Rao

K V Subba Rao (Expert)
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18 March 2009 It depends on Terms. To put it simply, if car is under control of Company, Sec 194I applies.

If car is under control of your client, Sec 194C applies

For detailed discussions, please visit: http://www.thehindubusinessline.com/mentor/2007/10/15/stories/2007101551311200.htm

CA Rajesh kr. Goenka

CA Rajesh kr. Goenka (Expert)
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18 March 2009 My ans. deduction can be done either u/s 94I( 10%) or 94C( 2%) depend on the fact of the case.
>If there is an agreement then deduction should be made u/s 94I because as per IT act motor car comes under the head plant
>On the other hand if there is no agreement or loading & unloading is involved then deduction should be done u/s 94C.