TaxTMI 
TaxTMI 
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
TDS on Car Taxi
22 Mar 2014 
2 Replies 
8435 Views Asked by
TDS classification on hired car services: fixed periodic rental treated as rent withholding, trip-based hiring treated as contract payment.
TDS on motor car hiring hinges on contract terms: fixed periodic payments for vehicle use treated as rent attract 194I, while trip-based hiring including driving and fuel is treated as contractual service attracting 194C. Withholding rates vary by payee status and the payer may also be liable to discharge service tax under reverse charge on the hiring service. (AI Summary)
TDS on motor car hiring hinges on contract terms: fixed periodic payments for vehicle use treated as rent attract 194I, while trip-based hiring including driving and fuel is treated as contractual service attracting 194C. Withholding rates vary by payee status and the payer may also be liable to discharge service tax under reverse charge on the hiring service. (AI Summary)