Tds liability clarification

Dear Bunty

In my opinion, this will fall u/s 194-I and TDS applicable @ 2%, this being hire charges for an "asset".

Regards

Ajay

Sec.194-I has two rates namely,

Rent of plant and machinery - 2%

&

Rent of land or building or furniture or fitting - 10%.

I think the "bartans" (utensils?) you have hired will fall under "plant" category and thus 2%.

It should be under 194 I - rent. 194 I is a specific sec. if your transaction doesnt fit into 194 I then consider general section 194C.

PS. It needs to be deducted only if total payments to a single payee exceed Rs.1,80,000 in a year.