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194C & 206C clash
sir actually we (Individual Assessee)get our books audited u/s 44AB.Futher we provide vehicles on hire basis to courier companies.Now our vehicles need to be parked on mthly basis resulting payment more than 1 lacs.I told the contractor to furnish pan as I need to deduct tax u/s 194C but his contention is that he will collect tax at sourse u/s 206C instead now what should I do
Replies (4)
You are supposed to deduct TDS under 194C
1. As per sec 194C any payment made under the contract (as per IT), TDS need to be deducted on the same subject to the threshold limit of Rs.1 lakh per annum.
2. In your case, you claim you will provide vehicles on hire to the courier company. In that case, he needs to deduct TDS and not you.
3. In case if you are paying rent for parking your vehicle TDS will be required to be deducted by you u/s 194C @ 2% in case of a company.
Please correct me if the above solution has an alternative view.
sir parking lot owner is saying he will instead collect tax from us.Mean I will deduct tds for parking payment made to him under 194C and he will tcs from me apart from parking fee under 206C.Yahan pe 2 sections(194C & 206C) me clash ho raha hai kyon ki hun dono ka tax audit hota hai
Let the tax Auditor resolve the issue
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