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.

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

TDS on crane hire: treated as rent under 194I if control transfers; otherwise as contract work under 194C.
Crane-hire payments are TDS-classified by factual control: where possession/control passes to the hirer and the hirer operates the crane the payment is rent of plant/machinery subject to rent-withholding; where the supplier retains control and operates the crane as part of a contracted work the payment is treated as contract-for-work withholding.