Tds on crane hire charges - 194C or 194I

[madhavvan n]

crane hire charges payments tds to deducted as per contractor 194C. or under  Sec 194I

[Ravi Chopra]

After an amendment in 2007 in section 194I, rent on plant, machinery or equipment is subject to TDS at the rate of 10%. Therefore, crane hire charges is subject to TDS under section 194I.

[Guest]

It is not clear from querry that whether you have hired a crane or you have entred in contact. If the assests is in your control and you are oprateing the same then it will cobvreed U/S 194I or if you have given a some work to a contractor and the control of assests is also with him then it will covred U/S 194C

[Rajesh Kumar Singh]

sir,

crane hire charges payments tds to deducted from contractor including service tax or excluding3

Rajesh Singh

[TRILOCHAN SAHU]

Yes Even in our construction company we deduct 2% TDS on gross amount (Including ST or VAT) on Crane Hire Charge u/s 194I, as crane is coming under plant & machinery.

[PRADIP SARKAR]

If u contract from Xyz with contract paper then 194c will applicable otherwise section 194I

[TRILOCHAN SAHU]

Even then you cant avoid the section 194I as it is a specifically meant for rental or hire charges.

[RAMDAS IYER]

if it is a "contract for work" using the crane and the crane is operated by the person who hires it to you, then the transaction will attract TDS u/s 194C at 2%

On the other hand, if it is hire of crane simpliciter, ie, the crane is given in your possession and control and you operate it, it will attract TDS u/s 194I

Ramdas Iyer

 

[RANGANATHA THAPASWI]

Thanks for all Experts.

Ranganath T

AI Summary

Debate on TDS Rate for Crane Hire: 10% Under Section 194I or 2% Under Section 194C? The discussion revolves around the appropriate section of the Income Tax Act for deducting TDS on crane hire charges. Participants debate whether Section 194C or 194I applies. Section 194I, amended in 2007, requires TDS at 10% for rent on plant, machinery, or equipment, suggesting crane hire falls under this category. However, if the crane is hired with operational control retained by the contractor, Section 194C at 2% may apply. The consensus leans towards Section 194I for crane hire charges, especially when the crane is considered plant and machinery. The discussion includes considerations of service tax and contract terms.