X (liable for Tax Audit) is a transport contractor of an Oil Marketing Co engaging his own 15 Oil tankers and 2 taken on hire from Y. Oil Marketing company is making payment to X after deduction of TDS us 194C.
Now my query is that whether X will make deduction us 194C at time of payment to Y.
Please advise.
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TDS us 194C
Replies (8)
Quick Summary
The Answer is Yes.
as X is liable for Tax audit he must deduct tax at the time of payment.
or he must get Form 26A declaration from Y.
as X is liable for Tax audit he must deduct tax at the time of payment.
or he must get Form 26A declaration from Y.
The Answer is Yes.
as X is liable for Tax audit he must deduct tax at the time of payment.
or he must get Form 26A declaration from Y.
as X is liable for Tax audit he must deduct tax at the time of payment.
or he must get Form 26A declaration from Y.
Yes TDS should be deducted
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.
TDS deducted u/s 194C.
Section 194I related Rent of Plant and Machinery not for Hire
Section 194I related Rent of Plant and Machinery not for Hire
@ 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.
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