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

TDS on hired vehicle services depends on transporter status; different withholding rates apply for individuals/HUF versus other entities.
The hiring of a vehicle for delivery of finished goods was treated as a GTA service; withholding under the income tax TDS framework depends on transporter status. Respondents advised a lower withholding rate when the transporter is an individual or Hindu Undivided Family and a higher rate for other persons, and the absence of a declaration about owning more than ten vehicles was identified as relevant to rate determination.