https://www.taxtmi.com/forum/issue?id=1739 Withholding tax applies to payments for car hire booked through an intermediary because the arrangement amounts to contracted carriage of passengers; lease-based withholding is inapplicable since the vehicle is not leased. Where aggregate payments exceed the statutory threshold, tax must be deducted at the contractor withholding rate on gross payments, unless a lower-deduction certificate is furnished. Failure to deduct risks a consequential disallowance under the tax disallowance provision, so practitioners should adopt a cautious approach to TDS compliance. en-us Thu, 28 Jan 2010 19:40:28 +0530 Thu, 23 Jan 2025 15:58:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=1739 Withholding tax applies to payments for car hire booked through an intermediary because the arrangement amounts to contracted carriage of passengers; lease-based withholding is inapplicable since the vehicle is not leased. Where aggregate payments exceed the statutory threshold, tax must be deducted at the contractor withholding rate on gross payments, unless a lower-deduction certificate is furnished. Failure to deduct risks a consequential disallowance under the tax disallowance provision, so practitioners should adopt a cautious approach to TDS compliance. Discussion-Forum Income Tax Thu, 28 Jan 2010 19:40:28 +0530 https://www.taxtmi.com/forum/issue?id=1739