TDS rate.

[Asked by Guest]

Hiring of Taxi falls under 194I or 194C. What should be the TDS rate.

[ranganath shenoy]

Hiring of taxi will normally fall under Sec.194C.The Sec.194J will cover only those cases were you have taken the car on lease and the car is at your possesion and control during the period of contract.On contrast, simple hire will not allow you to retain possssion of the car

AI Summary

TDS on taxi hire: treat ordinary taxi hire as contract payment for TDS purposes, not as lease or rent.
TDS on taxi services depends on the arrangement: ordinary hire is treated as a contract payment attracting TDS under contract-payment provisions, whereas a lease where the vehicle is in the hirer's possession and control during the contract period is treated under leasing provisions.