Incidence of tax in case of hiring of vehicle

I am working with a Public Limited Co.My question is---

We are hiring vehicle (Light) for day to day office work. Hiring is been done on monthly basis.Previously, the cab owner gave the Cab on rent and also supplied fuel.Accordingly we fixed the hire charges for the said vehicle.In that case,we only deducted TDS u/s 194I from the bills.

Now we are planning to issue fuel from our Central Store. We like to hire the Cab only(i.e. Dry Cab).

Is there any change in the incidence of Tax (any tax) on the part of the owner of the cab or to us?

Thank You,

Replies (1)

No change !

In your case, there is no change in incidence except on the amount of hire and tax paid theron. You have to pay TDS U/s 194 I on hire amount. The Cab operator also, collects service tax on the hire amount. Previously the hire amount includes fuel cost also. But now because your company is paying for it, you may get some cost reduction benefit.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details