Rent Car

TDS 194C for Contract @ 10%

TDS 194I for Rental Property 5℅ or 10%

In your case, you should TDS 194C @ 10%

Thanks for reference case study: 

I went through that complete case study article. I couldn't find anywhere 194-1 @ 2%.

Please read it again. If you find it please share it here.

Note:1

It was held that where buses/vehicles were hired for fixed tenure and for its exclusive usage Sec. 194C and not Sec. 194-1 could be attracted.

Note:2

Where assessee State Transport Corporation was making payment on kilometer running basis without any responsibility for running cost, maintenance cost, driver cost etc. Said payment would fall within the ambit of Sec. 194C and not under definition of rent as defined in Sec. 194-1. "

@ Mr.Rajkumar

1) Is there any specific purpose to opt this rental contract?

2) Rs.30,000/- is it fixed charges paid?

3)  is there any specific time and kilometres charges?

4) Pickup and delivery

5) you opt this car specific purpose but it was  used for specific purpose or not.

TDS should be deduct u/s 194I

There are points to clasify this car renting service in the case study.

If there is purpose of opting service and not in specific time period or charges, when it comes pick and delivery or transport on person to another place. Receipient left after purpose solved. It falls under 194C @ 10%

Viceversa, the above. The purpose of opting service of this car with fixed time or amount, or keep the vehicle without time limit and use whenever it needs. It falls under 194I @ 2% as rent plant & machinery based.

For building and land, furniture & fittings falls @ 10%

Originally posted by : CA Rashmi Gandhi
	@ Raja PM, 10% TDS applicable on land & building only.

Yes, You are exactly correct.

Originally posted by : RAJA P M
	TDS should be deduct u/s 194I  10%

Sorry to Say it's wrong reply....