a private limited company has hired tempo ( inclusive of diesel , driver etc) from some of its parties and pays "tempo hiring Expenses " in cash on a monthly basis . the question is , if the TEMPO HIRING CHARGES payable to 1person exceeds rs120000/-, is the pvt. limited co. liable to deduct tax at source ?? and if yes WHen?? and under which section?? please reply asap. thank u in anticipation.
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help needed on tds on rent
Replies (8)
In this case TDS u/s/ 194 C is applicable. Rate 2% +SC+EC
Its a contract only, not the hiring and therefore if it is for more then 20000 for a month's bill or more then 50000 for an annual bill, company should deduct TDS in 194C
yah it's not a tds rent case instead it's a tds contract case on which u have to deduct tds @ 2%.
it depends on the terms of contract if the has hired a car for example and it has been given to a particular employee in specific then it covers under sec 194I but as the tempo is hired and it is beleived that it is not given to one particular employee so it has to be deducted U/S 194C 2%+surcharge if applicable+3% education cess
tahnk u all of u for solving my query
thanks a lot
in case the only tempo is hired and cost of fuel for running is borne by the payer and further the driver is also employed by the payer then the tds shall be deducted as it is a rent other wise tds shall be deducted u/s 194C
tds will be deducted on all amount @ 2%
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