TaxTMI 
TaxTMI 
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
TDS on Buses hired for Employee transportation
22 Mar 2014 
3 Replies 
7919 Views Asked by
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. (AI Summary)
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. (AI Summary)