TDS ON CAR HIRING

TDS 1258 views 10 replies

Hello Members,

Can anyone tell me whether to deduct TDS on car hiring payments ?? under which section ?

I have come across a situation where one of the assessee has deducted TDS u/s 194C. But the Income Tax Departement disallowed the expenditure, asking the assessee to deduct tax u/s 194I.

Thanks.

Replies (10)

TDS to be deducted u/s 194C if: the assessee has a contract of hiring a car (any car). If the assessee is in need of a car then the contractee will send him a car which ever is availbale at that moment.

 

TDS to be deducted u/s 194I if: the assessee has a contract of hiring a specific car. That means the car hired will be with the assessee 24*7 (for that period)

Hope you have got ur answer.

Please elaborate your query if you are not satisfied

TDS will be deducted u/s 194C

TDS  will be Deducted U/s 194 C

Dear Milind,

I agree with friend Chetan-Follow this link

https://www.thehindubusinessline.com/mentor/2007/10/15/stories/2007101551311200.htm

Originally posted by : Amir

Dear Milind,

I agree with friend Chetan-Follow this link

https://www.thehindubusinessline.com/mentor/2007/10/15/stories/2007101551311200.htm

Thanks all. But do you have any case law on this or some more info. Will be very grateful if u could privde some more details.

The link you have shared is useful ( but is only an expert view and opinion )

Mr Amir Thanks for sharing

Thanks to amar for providing such link.

Control over the car can be taken as deciding factor. In case of hiring or leasing, the contrl over the car will be with company. Company will employ driver,  incur fule expenses etc.  If company have control over the car over the aggred period then it is hiring or leasing.

If company don't have the control,(the transporter may change car, he will employe driver, and incur fule expenses or may bring any vehicle for transport service), then it is transport contract. TDS should be deducted under section 194C.

Hi

Can anyone tell me if TDS is deductible on payment of stipend paid to summer trainees in a MNC. Pls elaborate your reply with Section/Case Laws.

 

Thanks

Sanjay Dodrajka

Dear Sanjay,

Stipend paid to summer interns during the course of their studies has been regarded as "scholorship" & the same is exempt u/s 10(16)

/forum/tax-on-stipend-recd-as-industrial-trainee-67200.asp


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