TDS ON HIRE CHARGES OF GENERATOR INSTALLED AT BANK

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WE HAVE DOING THE CONCURRENT AUDIT OF NATIONALISED BANK , OUR QUERY IS ABOUT TDS ON HIRE CHARGES PAID TO GENERATOR MAN WHO HAS PROVIDED HIS OWN GENERATOR AND BANK HAS GIVEN CONSOLIDATED AMOUNT OF RS.30000- AS HIRE CHARGES WHICH INCLUDES OPERATING,RUNNING MAINTENANCE CHARGES AND A RENT. WHETHER TDS HAS BEEN DEDUCTED AT CONTRACTOR RATE OR AT RENT ON PLANT MACHINERY.

Regards.

CA Sanjay Baheti

Replies (2)

Hi sir.....

AS PER SEC. 194I T.D.S ON RENT PAID FOR EQUIPMENT (from 01.10.2009) for machinery/ plant / equipment....... THE APPLICABLE RATE WILL BE @ 2%

 

AND AS PER SEC 194C T.D.S ON CONTRACTOR......... THE RATE APPLICABLE IS ALSO 2%

SO IT WILL NOT MAKE ANY DIFFERENCE.

 

THIS RATES ARE FOR COMPANIES

 

AND IF CONTRACTOR IS RAISING BILL FOR ALL i.e. INCLUDING GENERATOR PROVIDED, IS ALSO ONE KIND OF SERVICE SO ENTIRE BILL WILL BE COVERED UNDER 194C.

E.G.

TAXI HIRING BY GOVT. DEPT FOR PROVIDING TRANSPORT FACILITY TO THEIR EXECUTIVES.

PLEASE CORRECT ME IF I'M WRONG.

REGDS.

Yes ...

I agree with the gentleman's opinion. As the service provided by the person is in nature of contract. So rates applicable under Section 194C shall be applicable. So the provisions outlined by gentleman Mr. Shaswat.. (I m sorry if i spelled ur name wrong) is very useful and correct to your query.

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