TDS on transport charges deductible u/s. 194C not 194I

U/s 194-I, Income Tax is required to be deducted at source at the time of payment of any income by way of rent @’ 10% for the use of any machinery or plant or equipment. U/s 194C, tax is required to be deducted @’ 2% for carrying out any work which, inter alia, includes carriage of goods and passengers by any mode of transport other than by railways. Though generally speaking all types of machinery, plant and equipment given on hire get covered u/s. 194-I but hiring oftransport vehicles get specifically covered u/s. 194-C as far as Tax Deduction at source is concerned. Transport vehiclesused for carriage of goods and passengers are to be subjected to TDS provisions as per clause (c) of ExplanationIII of sub-section (2) of section 194C of the I.T. Act.