TDS on Contract u/s 194C

[ASHOK VIJAY]

We have availing crane services in our factory for loading and unloading of material. please advice whether TDS to be deducted or not. Whether it is fall under Transporter service contract category

AI Summary

TDS Deduction on Crane Services: Section 194C Applies, Not Transporter Services; Section 194I May Apply if Risks Included. A query was raised about whether Tax Deducted at Source (TDS) should be deducted for crane services used for loading and unloading materials at a factory, and if it falls under the transporter service contract category. One response clarified that TDS must be deducted under section 194C, as the service does not fall under transporter services, with a rate of 1% or 2% depending on the contractor's constitution. Another response agreed but noted that if the crane contract includes risks and rewards, it might fall under section 194I.