TDS section

Depends on the bill raised by the contractor.

TDS u/s 194I for JCB used

TDS u/s 194C for providing services for digging.

Check whether using of JCB is charged separately in the bill.

Deduct TDS u/s 194C as 194I would have been applied if you had used JCB under your control. This is payment for contact work and not for hiring charges.

Sir

JCB is operating by contractor himself but he is charging bill on time basis

in which he has operated.

Bill said JCB hire charges, hence tds will be deducted 94I

A good example here.

If this contractor uses labour (people) to dig the ground, TDS u/s 194C will apply.

If this contractor uses an excavator to dig the ground, TDS u/s 194I will apply.

If the assessee hires an excavator from a party and hires a driver on contract to use the excavator to dig the ground, TDS u/s 194I will apply on the hiring of excavator and TDS u/s 194C will apply on the hiring of driver on contract to use the excavator.

under sec 94c

Hiring Charges for Plant & Machinery or Equipment required to deduct TDS as pur 94I @ 2%

JCB is not plant & Machinery but equipment.

A good example here.

If this contractor uses labour (people) to dig the ground, TDS u/s 194C will apply.

If this contractor uses an excavator to dig the ground, TDS u/s 194I will apply.

If the assessee hires an excavator from a party and hires a driver on contract to use the excavator to dig the ground, TDS u/s 194I will apply on the hiring of excavator and TDS u/s 194C will apply on the hiring of driver on contract to use the excavator.

 ABOVE WILL APPLY,IF IN BILL,SEPATATE SHOWING,OF CHARGES........

IF NOT SEPARATE SHOW.....THEN TDS IS TO BE DEDUCTED....194C....

PLZ CHECK THE BILL OF CONTRACTOR....

Nature of contract is for digging the ground using JCB. Here the possession of the JCB is in the hands of the contractor only and even the right to use is with the contractor. Hence, He is only providing the service as a contractor for digging the ground. Hence it is in the nature of a contract deduct u/s 194C only

Agreed with Praveen. I also said the same thing earlier. This is because we have to go by the nature of work done and not just by the nomenclature of the service provided written on the invoice. This rule is followed to avoid the manipulation which one can make by changing the nomenclature of the services provided. Hence just by stating "Hiring Charges for JCB" in bill/invoice does not make it a contact for hiring instead of a contact for work. 

if bill is for hire charges than 94 i , otherwise 94 c