194I or 194C

TDS / TCS 1218 views 13 replies

 A car has been used on a contract basis. Drivers salary, Diesal expenes etc has been met by the owner itself. Minimum rent has been paid for a fixed kilometer. Rates over and above that kilometer will be variable . Whether 194I or 194C is applicable??

Replies (13)

Mr. Pravin,
 

In my opinion, the tax will not be deducted under Section 194I of the Income Tax Act, 1961. Reason being the details provided by yourgoodself doesnot satisfied the essential elements of Rent (Rent is defined in Explanation (i) to section 194I of the Income Tax Act, 1961). As per the explanation given in Section 194I the essential features of 'Rent' are: (i) Payment is made under any lease, sub-lease, tenancy or any other agreement or arrangement.(ii)Payment is made either for the use of only land and building (including factory building). TDS provisions are also applicable in respect of rent of machinery, plant, equipment, furniture or fittings.

 ya that's true... Sec 194C applies to this case...

 SEC 194C IS APPLICABLE

194c is applicable

194C

u/s 194C

Regards,

Lovenish Bansal

194 c only dear

194c applies

194C only yar..................

 


This is a contract for hire of vehicle. It s to be decided whether the contract is hire for machinery ( 194I) or a contract for Labour ( 194C).

The test for this purpose is to ascertain whehter the contraxt is for service or contract of service. To be more explicit. Who controls the operations of vehicle. Although the driver  has to obeyu the instructions but still as the control is with the owner is himself, in my opinion, 194C will apply.

Regards

yes, 194 C will apply.

194C

 Thank U all for your valuable comments.....


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