TDS us 194C

Since X would be hiring tankers from Y, can I say that the provisions of section 194I would apply here? Let's see what others interpret this as.

@ Manikanta

What's the difference between rent and hire?

Yes. Tax shall be deducted under section 194 C since MR X liable to tax audit and carrying more than 10 Goods carriages.(Exception shall be available to transporters only if they are covered under 44 AE)

Tax shall be deducted either at the time of credit or the time of payment whichever earlier

@ 1% if Payment / Credit to resident individual or HUF(75% of original rate concession only available up to 31.03.2021)

@ 2% if Payment/Credit to any resident person other than individual / HUF(75% of original rate concession only available up to 31.03.2021)

@ 0% if payment made to contractors(only to transporters covered under 44 AE)

Based on above reply If Y is holding more than 10 Goods carriages tax shall be deducted under 194 C.