IS TDS U/S 194I DEDUCTIBLE IN RESPECT OF CAR HIRE CHARGES PAID BY A COMPANY TO CAB OPERATORS AND CRANE/FORKLIFT HIRE CHAGES PAID TO INDIVIDUAL OPERATORS AS THE DEFINITION OF PLANT INCLUDES VEHICLES.
194 i deals with rent(lease or sublease) for the use of land or building inlcuding factory building or for both land and building with furniture or fittings and land apputyrnsy there to.
Car/Crane hire charges come under 194c as it is works contract.
Amendment has been made by Finance Act 2006 and as per this the plant, machinery, equipment even independent of land building are liable for deduction of TDS as rent u/s 194I
Before the Amenmendment by Finance Act 2006 i.e. upto June the hire charges come under Section 194 C & TDS thereon was 2.244%(2.04). But from July onwards as definition of has includes the plant, machinery, equipment even independent of land building are liable for deduction of TDS as rent u/s 194I
CAclubindia
