There is a contradiction between under which section tds should be deducted on the payment of rent paid in respect of hire of car whether 194 C of 194 I.
Since 194 C says that tax should be deducted on the payment of hire of plant & machinery or equipments --
NOW WHEHER TAX SHOULD BE DEDUCTED ON PAYMENT OF HIRE OF CAR IN ACCORDANCE WITH 194 I.
I dont think car comes under "plant & Machinery" or "Equipments. Only 194 C will apply
car is not covered in the definition of plant & machinery. so tds on the hire charges is covered under 194C, not under 194I
I did not get your question as per your query you r refering to section 194I and 194C these section explane TDS on rent and contract respectively so there is no question for plant and machinery and with your question and according to my openion Section 194I would apply as it is ultimately rent and for your knowdge there is a case law over it
thanks and regards
CAclubindia
