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TDS on truck hire charges and pick-up hire charges

Manoj Bhardwaj (50 Points)

08 April 2022

Dear Experts,
please confirm TDS section and rate of tds on truck hire charges and pick-up hire charges

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4 Replies

Kesavaraj S (578 Points)
Replied 08 April 2022

TDS U/s 194C -Contract is applicable on Truck hire charges .Rate of TDS dependable on PAN NO.1% for Individual and 2% for Others...

2 Like

CA Puja Sharma (Chartered Accountant) (4874 Points)
Replied 09 April 2022

In my opinion. TDS to be deducted @ 2% u/s 194I on the hire charges.

1 Like

CA Raj Doshi (Practising CA) (8723 Points)
Replied 10 April 2022

Hiring of trucks is not in the nature of taking a truck on rent. so 194I is not applicable. 194C is applicable.

1 Like

Anand Mhetre (Service) (31 Points)
Replied 30 September 2022

Dear Sir,

We are a Local Authority and one of our vendor Provides us transportation service of our staff and transportation of goods in the same vehicle on contract basis . We often take service of such type of vendors for this activity. At Present we are deducting TDS at the rate 10 % on taxable amount from the payment of these vendors under Income Tax Act 1961 and section 194(IA) along with this, We deduct TDS GST (CGST @ 1% and SGST @ 1%) for GST Registered Vendors. This Vendors CA contacted us and gave information that the TDS Duduction rate is to be at the rate 1% (for Proprietor) & 2% (for Firm or Company)as per Income Tax Section 194(C) he also suggest to raise all the future Bill to the Best respective Depot in RCM form . In this context We request you to Clarify the above matter and guide us about TDS Deduction percentage and Income Tax Section Under which this TDS should be deducted. Also guide us about raising bills in RCM form Please.

Thanking you.

Anand V Mhetre