TDS issue

SECTION- 194C

Query:
Under which section TDS will be deducted if assessee takes a car on rent in following circumstances?
Case I : If only car is given on rent.
Case II: If car with driver (chauffeur) is given on rent.

Solution:
As per section 194C of the Income-tax Act, 1961, NO TDS will be deducted if such contract is for personal purpose of assessee (Individual/HUF only).
Case I: if contract is to give car without chauffeur on rent then TDS will be deduct u/s 194I @ 2% and,
Case II: if contract is for giving car with chauffeur on rent then TDS will be deduct u/s 194C @1% or 2% as the case may be.