S. 194C vs. 194-I TDS on vehicle hire charges: ITAT Ahd

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Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

Ahmedabad Urban Development Authority vs. ACIT (ITAT Ahmedabad)

Even fixed charges for hire of vehicles not “rent” for s. 194-I TDS

 

The assessee hired cars on fixed rent payment and deducted TDS u/s 194C at 2% on the basis that it was a “works contract”. The AO & CIT (A) held that since cars were “plant”, tax ought to have been deducted u/s 194-I at 10%. The assessee was held liable for the short-fall of 8% in TDS u/s 201. On appeal by the assessee, HELD allowing the appeal:

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Regards,



Editor,


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