DEDUCTION OF TDS

[S.C. WADHWA]

Dear Sir,

 

A company is hiring taxi services from an individual the bill in respect of which for the financial year 2011-12 is about Rs. 100000/-.

 

I want to know whether the company is required to deduct tds on same or not.

 

If, it is required to deduct tds, please tell under which section it should be deducted.

 

 

 

 

 

[kolasi raghu]

The Company is Required to deduct TDS

U/S  194C. the Rate is2%.

 

[ASHISH DESAI]

TDS u/s 194c will applicable otherwise section 194I is to be deducted @1%, if payee is an individual.

however, first verify the terms of the car hire agreement to confirm the applicability of Section 194c will applicable otherwise section 194I.

if section 194I is applicable, then no TDS till Rs.180,000/-.

AI Summary

Company Queries TDS Deduction on Taxi Services: Section 194C vs. Section 194I Explained for FY 2011-12 A company inquired about the requirement to deduct Tax Deducted at Source (TDS) on taxi services hired from an individual, with a bill amounting to Rs. 100,000 for the financial year 2011-12. Two responses were provided. The first response stated that TDS should be deducted under Section 194C at a rate of 2%. The second response agreed but added that if Section 194I applies, TDS should be 1% for individuals, with no TDS required until payments exceed Rs. 180,000, suggesting a review of the car hire agreement to determine the correct section.