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Rent on dg set

TDS 594 views 8 replies
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3 Points Joined July 2018

there is a generator installed in my office (installed by a contractor) on which rate I should deduct Income tax from him and which section, The contractor is having Individual PAN Card (Not in the name of firm)

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On 20 August 2018 at 22:04 Report
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2539 Points Joined March 2016
As contractor is individual Tds @ 1% should be deducted u/s 194C if the single payment exceeds 30000/- OR aggregate of payments made in the FY exceeds 100000/-
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On 20 August 2018 at 22:25
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128147 Points Joined January 2015
Sorry for the different view.,

TDS is applicable u/s 194I as Plant and Machinery @ 2%
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On 20 August 2018 at 22:54
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2539 Points Joined March 2016
@ RAJA P M
Dear Sir,
might my view is different but as per the query the the person to whom rent is paid is a contractor and he is providing genset on contract basis to use.
that's why tds is required to be deductible as per sec 194C
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On 20 August 2018 at 23:00
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128147 Points Joined January 2015
Well...

Dear.,
As per above Query the word of "Contractor" mean based on the Contract of the Agreement or any other Common word. It's just a business related words...

But,
Here rendered a Machine (Genset) and TDS applicable sec 194I @ 2%...
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On 20 August 2018 at 23:08
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867 Points Joined December 2015
Agreed with Raja P M. Just using the word contractor, the transaction doesn't consider as contacts. Nature of transaction should be kept in mind, while considering TDS.
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On 21 August 2018 at 00:14
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504 Points Joined December 2017
TDS shall be deducted under 194I(a) @ 2% , further section 194C is attracted when there is "work" done.... so Just giving a genset on rent isn't work....
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On 21 August 2018 at 08:17
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3 Points Joined July 2018

OK avery one

I deduct tax @ 2% u/s 94ia and I filled etds return, but Income tax deparment raised query and send me default with short deduction demand @ 10%

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On 22 August 2018 at 20:06
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128147 Points Joined January 2015
At the time of filing TDS return You are select "194I(a) - PLANT / MACHINERY RENT" then Why Dept send default notice...?!

In case You select any wring Section then Definitely Dept raise notice for short deduction...
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On 22 August 2018 at 20:22

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