TDS ON HIRED VECHICLE

[Rajeev Khulbe]

GOOD AFTERNOON TO ALL MY GREAT EXPERTS,

TODAY I AGAIN CAME HARE TO GET YOUR VALUABLE REPLIES,

SIR WE HIRED A VECHICLE ( MAHINDRA PICK UP) FOR OUR FINISHED GOODS DELIVERED FROM FACTORY TO CUSTMOR PLACE. MONTHLY RENT IS 38500 / MONTH. SIR MY QUERY ONLY THAT

1- WILL THIS SERVICE CAME UNDER GTA

2 WILL I DEDUCT TDS U/S 194C(6) @ 1% OR 2 % IF TRANSPORTER WILL NOT PROVIDE ME ANY DECLERATION FOR NOT OWNING MORE THEN 10 HEAVY OR LIGHT VECHICLE.

THANKS

[KASTURI SETHI]

Sh.Rajiv Khulbe Ji,

Answer to your Query No.1 is Yes. Query no. 2 does not pertain to me, it being related to Income Tax Act which is not my field.

[Rajeev Khulbe]

THANKS SIR

[Ganeshan Kalyani]

Sir 1% TDS if transporter is individual /HUG, otherwise 2%. Thanks.

AI Summary

Inquiring about TDS rates for hired vehicles under Section 194C(6); 1% for individuals/HUF, 2% for others. A participant inquired about the applicability of Goods Transport Agency (GTA) services and the appropriate Tax Deducted at Source (TDS) rate under Section 194C(6) for a hired vehicle used to deliver goods. The monthly rent for the vehicle is 38,500. An expert confirmed the service falls under GTA. Another expert advised deducting 1% TDS if the transporter is an individual or Hindu Undivided Family (HUF), and 2% otherwise, if no declaration is provided regarding ownership of more than ten vehicles.