Tds on payment to rent a car

In my company, occasionally we hire car for traveling on rent a car basis. Also we hire a car for employees pick & drop facilities but there is no contract between company & car owner and whenever we need the car we called the car. After month end, the owner (individual) of the  Car used for pick & drop facilities raise his monthly bill. Now my question is

1) Is it require to deduct TDS from Monthly bill raised by owner of Car used for pick & drop facilities?

2) Also is it require to deduct TDS from bill raised by Rent a Car?

 

 

Replies (2)

I THINK IF ITS A REGULAR CASE ,BY READING YOUR FACTS IT LUKS LIKE THT THOUGH THERE IS NO AGREEMENT ,BUT UNFORTUNATELY IT WIL BE COVERED UNDER SECTION 194I NOT 194C,THOUGH ANY SECTION COVERED THE RATE OF TDS IS 2 %,SO TO BE ON SAFE SIDE U HAVE TO DEDUCT TDS...THOUGH LIMITS ARE DIFFERENT IN BOTH THE SECTION ..IF POSSIBLE DO TEL ME THE AMOUNT OF BILL

yes the tax is to be deducted at 2%.it falls under the provisions of sec 194I.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details