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Tds on lift

TDS 1047 views 6 replies

An assessee has hired Lift used at construction site. Now my question is in which section TDS is to be deducted i.e.  under 194I (Renting of Plat/ofc equipments) OR 194C. Whether the above lift is covered under plant & machinery as defined in sec 194I ?

Replies (6)

Lifts r considered as part of building and hence TDS @ 10% u/s 194I. But this is debatable I think.

/experts/depreciation-on-lifts-974725.asp#.VXAmGEazmT8

/experts/asset-head-for-lift-elevator-937595.asp#.VXAnqUazmT8

In my opinion it should be considered as P&M. It is not an essential part of a building. It is installed for the convenience just like AC and other appliances. Logically it cannot be removed once installed. But the use of, or the lift itself can be removed.

@ Ajit: Yeah this view is also right. Thats why I said, it is debatable.

In my opinion you deduct 194(I), in case rent exceed above 1,80,000/- deduct 10%
You are saying that lift hired at construction site, generally lift hired at construction site for lifting bricks sand cement, after completion of contract it it returned to its owener, so long as the lift with us, it is totally under our controll so it should be covered under section 194i and tds should be deducted @ 2 percent contrary if lift is totally under controll of vendor( owener of lift) then its just like a contract then it would be covered under section 194c.
This is the case of judicial impasse so the question is debatable.


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