TDS on vehicle rent / hire, Income Tax

[Hemant Pandit]

Sir,

Whether vehicle taken on rent/ hire require to be deducted TDS u/s 194C or 194I?

Please give case law if possible.

Posts / Replies

[GOPALJI AGRAWAL]

The terms of the agreement would decided the fate. It may fall u/s 194C if the possession remains with the owner and section 194I(a) otherwise.

[CA Rachit Agarwal]

If the vehicle is taken on monthly basis, and fixed rent is paid then it would get covered under Section 194I, however if the vehicle taken on hire is on basis on requirements as when required then it would fall under 194C..