Urgent response - tds if bus hired for trips from state transport corporation

AS STATE TRANSPORT CORPORATION IS GOVERNMENTAL COMPANY,

NO REQUIREMENT TO DEDUCT TDS

There is a very close gap between 194C and
194-I and here the transaction is in the nature of Renting of Plant & Machinery and NOT of giving contract for Transportation.

If the STC would have operated the Transportation service itself then it would have been covered by 194C and then there would have been NO TDS (sub to certain condition).

But here the STC is simply renting out the buses to you for certain period and therefore here 194-I would be applicable and if payment exceeds the threshold then would certainly be TDS Deduction.

Therefore, In your case TDS WOULD BE DEDUCTIBLE subject to threshold.