We are a limited co. and procured Vehicle (Cars) on Fixed monthly charges from an individual.If the payment exceeded in current F.Y. Rs. 10 Lacs than what will be TDS rate? Whether the rates of TDS will becomes head Rent on Plant and Machinery or comes under head contract work.
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TDS on car Hire Charges
Replies (8)
the case will be covered u/s 194-I instead of sec. 194-C.
and the rate of TDS applicble in ur case is 11.33%
Dear Frds,
if You do contract with Individual & hire car under sec 194 c than you deducted @ 2.266% (2+10%+3%) as per rate contract. & you don't think abt his income. ok
Ph. no. 41000530 ext. 324. This only advice.
dear friend
your query is related to section 194 I and the rate of TDS will be the rate taken for plant & machinery . so rate of tds will be 11.33% as income is more than 10 lac in case of individual
Sec.194 I only applicable. We have to deduct 11.33% (10% tax+10% surcharge + 3% Education cess)..
Thanks to all of You.
Motor car with driver - then 194 C is applicable
Motor car without driver then 194 I is applicable
Hi every body,
My question is almost similar, What will be implication of TDS in case of finance lease. Do we need to deduct TDS? If yes, then why?. Because we will be creating asset in terms of AS- 19.
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