tds on hiring of construction equip. & vehicles

Dear Sir/Madam,

I want to know whether the TDS provisions on hiring of vehicle, for transportation of staff from one place to another and  hiring of const. equipments like cranes, D.G.sets is 2.06% section 194C (tds on contractor )and 10.30% section 194I( tds on plant & machinery) respectively ?

Further I want to add to my prior question that if the person providing vehicles on hire for transportation of  office staff from one place to another also provides driver then whether TDS provision is to be made @ 1.03% (sub -contractor) or it must still be 2.06%(assumption surcharge not applicable due to gross billing less than Rs. 10 Lakhs)

and in case of  hiring of construction equipments like cranes, hydra motars,tractors and D.G.sets whether the service providers if provide his driver for providing the said service, then TDS provision should be made @ 1.03% or still must be 10.30% ?

and further whether the hiring of cranes, hrydra machines ,tractors and heavy  equipments (movable and non movable )for construction do come under plant & machinery category(sec. 194I) or contractor  category (sec.194C  ) ?

 

 

Replies (2)

It is right

If the company hires vehicle for transportation of staff then it is trated as contract with the owner of the vehicle. therefore TDS rate should be 2% + Cess. If the company hires machinery or any equipemnt, then company should have to pay rent every month. TDS rate should be 10% + cess.

in case of hiring vechicles for transporting staff  tds is 2% + surcharge&ecess

in case of hiring plant and machinary it is 10%+ surcharge&ecess

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