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Problem telaterd to tds

m mehra (self) (26 Points)

16 June 2012

Hello Friends,

I want to know about a problem which is related to TDS

Our company Pays Rs. 18000 PM as to owner of generator as rent in addition to rent Rs. 600 per hour on the basic of use of generator.There are two alternate for TDS .First one is TDS Under section 194I on amount without including Service Tax .

The Second is TDS under section 194C on amount including ST.

Plz suggest me which is best and proper solution

Thanks

M Mehra

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11 Replies

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 16 June 2012

I dont think there is a difference, since in both the sections, rates are 2%.

There is only a difference when the payee is an individual or an HUF wherein Sec 194C rate would be 1%.

m mehra (self) (26 Points)
Replied 16 June 2012

Thanks for answering But sir under section 194c the amount would. Be including. Service tax & in case of section 194I service tax figure will be exclude

(Guest)

TDS to be deducted u/s 94I

(Guest)

Mr. Prateek Agarwal TDS for Sec. 194I = 10% 194C = 2%

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 18 June 2012

Dear Mr Ram,

TDS u/s 194I attracts 10% when rent is paid for buildings. When it is for plant and machinery, it is 2% u/s 194I.

Dear Mr. Mehra, Yes, you are correct. You can deduct u/s 194I, not u/s 194C.

Regards

CA Monal Agarwal (job) (38 Points)
Replied 18 June 2012

i think TDS u/s 194I and not 194C.......194C is for contractors

(Guest)

agreed with prateek agarwal. I do not think there cannot be any .......... on this point.

Originally posted by : Prateek Agarwal

Dear Mr Ram,

TDS u/s 194I attracts 10% when rent is paid for buildings. When it is for plant and machinery, it is 2% u/s 194I.

Dear Mr. Mehra, Yes, you are correct. You can deduct u/s 194I, not u/s 194C.

Regards

m mehra (self) (26 Points)
Replied 18 June 2012

"Thanks to all of you for your suggestion"

(Guest)

Originally posted by : ram babu b.com
	agreed with prateek agarwal. I do not think there cannot be any .......... on this point. Originally posted by : Prateek Agarwal Dear Mr Ram, TDS u/s 194I attracts 10% when rent is paid for buildings. When it is for plant and machinery, it is 2% u/s 194I. Dear Mr. Mehra, Yes, you are correct. You can deduct u/s 194I, not u/s 194C. Regards

Shri Ramji,

I have a small confusion in my mind here in the present case Generater Rent is given, will it not be considered as Plant and Machinery, TDS rate for the same is 2%.... it would be a great help if I am wrong and be rectified with explaination.

Regards