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Whether tds is applicable or not?

TDS 1294 views 18 replies

Dear all, 

The payment to a Operator will attract 194 C and if it is paid to an individual taxidriver then, 194I but mostly the person wont have PAN and a higher rate to be adopted 20%.

And if a company makes payment as travelling expenses to an employee then its only a reimbursement.no TDS attracted. And for personal purposes No tds .So first the question should be clear.. 

yes absolutely right only sec 194c will be applicable here.

Mr. Anirban Dev

I have explained 2 scenarios. In which scenario your case fit into.  

 

K.T.Antony

Rajesh is correct.. since as per income tax act, 1961...Plant & Machinery includes Motor cars other than those used in a business of running them on hire..

in the above case, car is hired.  therefore TDS will not be applicable u/s.194I which says 2% for the use of any machinery or plant or equipment.

Its a contract and you need to deduct tax under section 194C. 


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