TDS on Buses hired for Employee transportation

[Pradeep Jain]

Dear Sir,

We have hired buses for transportation of Employee from Home to Factory and back.

In this connection on payment of amount, TDS would be deducted under which section 194C or 194I

Regards

Pradeep Jain

[RAHUL SHARMA]

TDS should be deducted under Section 194C.

[Guest]

I think this is the case of rent a cab services then may I know how you treat with service tax ...

Vikram

[SHIVKUMAR SHARMA]

Dear Vikram

If yours is a Pvt.Ltd company or Ltd Company then you have to pay 100 percent Service tax on RCM(Under reverse charge mechanism scheme).Pls.note that in this case Cenvat credit facility is not avaible.

SHIVKUMAR SHARMA

AI Summary

TDS on Employee Transport Buses: Deduct Under Section 194C, Not 194I; Service Tax Reverse Charge Applies A query was raised regarding the deduction of Tax Deducted at Source (TDS) for buses hired to transport employees from home to a factory. The primary question was whether TDS should be deducted under Section 194C or 194I. One respondent advised that TDS should be deducted under Section 194C. Another participant suggested considering it as a rent-a-cab service and inquired about service tax treatment. It was clarified that if the company is a private or limited company, 100% service tax must be paid under the reverse charge mechanism, without the availability of Cenvat credit.