applicability if VAT

[Asked by Guest]

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

AI Summary

Transfer of property in goods triggers TDS under state VAT; mere tractor hiring for garbage likely falls outside.
Tax Deduction at Source under State VAT applies only where a transaction involves a transfer of property in goods or a transfer of right to use goods; purely service-oriented hiring without such transfer falls outside that TDS mechanism. In the municipal tractor-hiring scenario described, payments appear to compensate vehicle hiring and operational services rather than effect a transfer of property, so VAT TDS is unlikely; taxability may still depend on effective control and precise contractual terms.