Upon hiring of motor vehicle

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kapil kumar adwani (Querist)
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27 April 2014 if a person hiring of motor vehicle means car for travelling and on the monthly basic then, is the person liable to deduct tds and at what rate 2% or 10%

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 April 2014 if the agreement is for the car only, then it shall be covered under 194-I and tax deduction shall be 2%.

however, if the same also includes items such as petrol charges, driver, maintenance etc, it shall be covered under 194C and rate shall depend on the constitution of the contractor.

(note: deduction is subject to the payments crossing the limits prescribed in the relevant sections).

In any case 10% deduction wont be applicable to this case.

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