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 under section 194C applies to payments for hired buses for employee transport; service tax may arise under reverse charge. Payments for hired buses used to transport employees are to be treated as contractual payments subject to deduction of TDS under 194C. Separately, where the hirer is a private or limited company, the service tax on such transport services may be payable under the reverse charge mechanism, and Cenvat credit is not available for that reverse charge liability.