TDS on Car Taxi

[Pradeep Jain]

Dear Sir,

Our Company hires car taxi for official work . At the time of payment , TDS would be payable under section 194C or 194I

Regards

Pradeep Jain

AI Summary

Company Queries TDS for Car Taxi Hire: Section 194C vs. 194I; TDS Rates and Service Tax Explained A company inquires about the applicable Tax Deducted at Source (TDS) for hiring car taxis for official work, questioning whether Section 194C or 194I of the Income Tax Act applies. One respondent advises that if the taxi is under the company's control with fixed rent, Section 194I applies; otherwise, Section 194C is applicable for normal trip-based hiring. Another respondent highlights that TDS should be deducted at 1% for individuals and 2% for companies, with an additional service tax under the reverse charge mechanism at 4.944% of the bill value.