tds on hiring vehicles like tippers

TDS 1537 views 1 replies

Hiring of tipperc comes under 194C or 194I

Replies (1)

Test it this way for any Vehicles Registered under motor vehicles act.:-

1) You take vehicle on hire and you fill your own petrol and use your own driver and you also maintain it and vehicle is in your possession Then you deduct under 194 I

2) You take vehicle from the owner and he provides driver, fuel and maintenance and charges you a hiring charge per KM or per day or say 8 Hours 80 km but the vehicle always remains with him. Then it is a contract and 194C

3) You take vehicle as No. 1 above and then you run it on contract to some customer and vehicle is in your possession, your customer will deduct from you u/s 194C and you continue to deduct from owner 194I.

4) You take vehicle as per 2 above and further give it to some customer and you bill to customer then you are contractor u/s 194C for the customer and the vehicle owner is your sub contractor u/s 194C.

Situation may be different for unregistered vehicles (equipments like cranes or forklifts operating in closed private premises or even excavators in private quarries). In most cases they are in possession of the premises owner who takes them on hire and therefore u/s 194 I.


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