CA and CS finalist
143 Points
Posted on 30 September 2011
Dear Pankhil,
As you mentioned that contractor is charging on the basis of number of hours JCB is operated, it is clear that he is charging only for using the JCB. Thus, we can take it as JCB hire charges.
As per my knowledge, TDS will be deducted under section 194I of Income Tax Act,1961.