navinkumar naicker (Article) (419 Points)
11 August 2011hello caclubindia,
please let me know whether TDS should be deducted on crane hire charges.
however the said crane hire charges is being charges by an logistics company to us because the logistic company has hired the crane for lifting goods so that it can be transported.
Mohd Azad
(Account Manager)
(28 Points)
Replied 11 August 2011
off course tds should be applicable under 194-I at 2%
Pulkesh Mehta
(Chartered Accountant)
(243 Points)
Replied 11 August 2011
1. No,there is no TDS liability on ur side, u are not the payer of the Rent -You are only reimbursing the charges to Logistic Company and liability of payment to owner of crane will be done by Logistic Company,so in my opinion liability of deduction of TDS is of Logistic Company ,not of yours.
2. I thoink that this expenditure is coverable in 194 C not in194 I because it is the businessof Crane Owner to use crain for its business purpose i.e to lifting goods, that's why it is contract between between Logistc Company and Crane Owner.
vaibhav gupta
(CWA (CA CS FINAL))
(106 Points)
Replied 12 August 2011
Tds should be deducted u/s 194C a nature of contract not an agreement looklike rent
GAURAV BANSAL
(STUDENT)
(83 Points)
Replied 12 August 2011
yes tds is to be deducted u/s 194 C @ 2% BECAUSE COMPANY IS PROVIDING CRANE. WE ARE NOT MAINTAING THE CRANE SO IT SHOULD NOT BE COVER U/S 194 I
Mohd Azad
(Account Manager)
(28 Points)
Replied 12 August 2011
It's all depend on nature of expenditure. If nature showed for machinery rent than allowed sec 194-I.
And under taxation service Tax and TDS will not be rebated. so TDS will liable.
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
