TDS on hiring car

[manohar indore]

Hi Experts,

 

We hired car for a whole day. Subsequesnt we ahve paid for that

by inclusive of Service Tax. Kindly let's know TDS is applicable or

not on such transaction.

 

[Guest]

Hi,

TDS will be applicable on hiring of car u/s. 194I or u/s. 194C.

Thanks,

Ashok

 

[Guest]

U/s 194C

AI Summary

TDS on car hire applies under rent-or-contract provisions; deductors must withhold tax on such payments. TDS is applicable on hiring of a car paid inclusive of service tax; respondents indicate withholding under the rent-like payment provision or, alternatively, the contract-payment provision, with one reply preferring the contract-payment head.