sir,
we(Municipal Corporation) are hiring tractors including vehicle,fule,dricer batta and othe maintainances for lifting of garbage and to transport to a nearby dumpyard.we are paying them Rs 680-00 per trip at four trips per tractor per day which comes to nearly Rs 85000.00. My query is whether this hiring of tractors attracts TDS under VAT and if so what is the percentage of recovery under which rule to recovert the TDS.
chakravarthy
Municipal Corporation Seeks Clarification on VAT and TDS for Tractor Hire in Garbage Transport Services A municipal corporation inquired about the applicability of VAT and TDS on hiring tractors for garbage transport. The query focused on whether this service constitutes a 'transfer of right to use goods,' which would trigger VAT liability. Respondents advised that VAT applicability depends on the contract's nature and whether it involves transferring property in goods. One response clarified that since the payment is solely for hiring tractors, not for transferring property, TDS under VAT doesn't apply. Another noted that either service tax or VAT might be payable, but works contract tax is not deductible. (AI Summary)
TaxTMI 
TaxTMI 
