Tds query...please help

533 views 4 replies

My query is relating to Tds, I own a logistic company who provides TATA trucks and trailers to different infrastructures companies like Simplex and Lanco Infra on a monthly rental basis. They deduct TDS under the head 194I @ 2%. But the above trucks and trailors provided by me were not own by me. I hire it from different transport company at monthly rental and give it to infrastructure companies. 

 

Now, I have an obligation to deduct TDS of transport company, some experts are saying to deduct u/s 194I @ 2% and some are saying to deduct 1% under 194C (Sub Contractor) as transport company act as a subcontractor in the above case.

Now tell me what to do.

Thankyou,

 


 


 

 

Replies (4)

Deduct the TDS under section 194I @ 10%

TDS rate is 2% under 194I because it is a equipment/ machinery. 

 

ya ryt thanks for noticing the error....

I think for the infrastructure company it may fall under 194I but for the logistics company it is a transcation in the course of business of hiring, leasing or plying goods carriages from the transport company and hence sec 194C applies when the logistics company makes payment to the transport company. As per sec 194C if the trasnporter furnishes PAN tds is not required to be dedcuted.

Kindly correct me if i am wrong.

Regards

Prashanth.

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