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..
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..
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.
CAclubindia
