Tds u/s 194 i

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Roshni Garach (Querist)
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04 September 2013 Hello

Can any one describe the definition of Plant & Equipment u/s 194 I (TDS on Rent= 2%)
Rent paid on hiring car is included in this section or not?????
Is it necessary to deduct TDS on rent paid for hiring car????

CA Pallav Singhania

CA Pallav Singhania (Expert)
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04 September 2013 Taxi on specific job:
when ever taxi or any other vehicle booked for a specific Job like giving a contract to take employees from home to office and office to home .In these type of work a specific job has been assigned to vehicle and vehicle has not been hired as such so it should be covered u/s 194C and not under section 194I

Control of owner of vehicle:
In most of the time vehicles are hired with driver and control of the vehicle remain with the owner of the vehicle through driver,but this is not the deciding factor at all though its a point to be considered,whenever the control of vehicle remains with the the owner of the vehicle then it generally means that vehicle is specific job and not hired as such ,so deduction should be under 194C .but some times vehicle with drivers are also hired without specific jobs in that case person who has hired the vehicle can travel on it any where thought there may be some restriction but point is that no specific job has been assigned ,so in this case it will be covered under section 194-I

TDS should be deducted u/s 194C. - Individual @ 1% - Company or Regd. Firm @ 2%

Under Section 194I, tax at 10% is to be deducted at source if the rent paid/payable exceed Rs 180000 per annum.

Roshni Garach

Roshni Garach (Querist)
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05 September 2013 thank you very much sir for your quick response
As per the description given by you if there is specific job assignment then 194C is applicable otherwise 194I is applicable

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