DEDUCTION OF TDS, Income Tax

[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.

 

 

 

 

 

Posts / Replies

[kolasi raghu]

The Company is Required to deduct TDS

U/S  194C. the Rate is2%.

 

[HARSHA JOSHI]

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/-.