"April, 2011" Archive

To qualify u/s. 194J, payment for technical services should be a consideration for acquiring or using technical know-how

Payments made to NSICT were for container movement and there were no professional or technical services involved in the movements of containers. The contention was restricted only to the technical services and not towards managerial or consultancy services. AO has not pressed the later part of the Expl. 2, which deals with provision of se...

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Posted Under: Income Tax |

Guwahati High Court stays notification levying service tax on lawyers

The Bar Association of Gauhati has filed a Writ Petition in the Gauhati High Court to challenge the levy of service-tax on “Legal Consultancy Services”. The High Court has on 29th April 2011 said the matter requires in-depth scrutiny and directed that service-tax would not be recovered till the next date of hearing being 25th May 2011...

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Posted Under: Income Tax |

Rural households in India paid over Rs 470cr bribe for basic services

Ranging from Re one to Rs 950, rural households in the country could have paid a whopping Rs 471.8 crore last year as bribe to avail basic facilities such as ration, health, education and water supply, says a study. The 'India Corruption Study 2010 report prepared by Centre for Media Studies (CMS), a survey of 9,960 households in 12 state...

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Posted Under: Income Tax |

New Validation regarding TDS transactions not exceeding / exceeding threshold limit in quarterly e-TDS/TCS statement pertaining to FY 2010-11 and onwards

A. Procedure for preparation of return. Deductors' Manual for Quarterly Correction Returns B. Data structure (File Format) For statements pertaining to FY 2010-11 and onwards File Format for Form 24Q (1st, 2nd & 3rd Quarters). File Format for Form 24Q (4th Quarter). ...

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Posted Under: Income Tax |

Infrastructure claims paid to franchisees vs. Rent u/s 194I

Held that the agreement was in fact a franchisee agreement and it could not be said that the rent was being paid by the assessee company to the licensee franchisee. There was no payment of rent by the assessee company to the licensees/franchisees and hence the provisions of section 194I cannot be made applicable. CIT vs. NIIT Ltd. (184 Ta...

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Posted Under: Income Tax |

TDS on Commission and Supplementary Commission received by travel agents

It was held that tax should be deducted at source under Section 1 94H on amount available to agents being difference between airfare fixed by Airlines and price at which agents are enabled to sell tickets. Around the World Travels & Tours Pvt. Ltd. vs. UOI (141 Taxman 53) (Mad.) ...

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Posted Under: Income Tax |

Section 194H – Whether difference between commercial price and published price can be classified as commission or not?

CIT Vs. Qatar Airways (332 ITR 253) (Bombay High Court)

CIT v. Qatar Airways (332 ITR 253) - The agents of the assessee (airline) were entitled to sell tickets at any price between the fixed commercial price and the published price. As a result the assessee would have no information regarding the final rates at which tickets were sold. It would be impracticable and unreasonable to accept the a...

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Do facilities provided by hotels –fall under the term “carrying out work”

The word “carrying out work” u/s 194C is limited to any work which on being carried out culminates into a product or result (reliance was placed on the decision of the SC in case of Associated Cements). Circular 681 dated 3 March 1994 to the extent it applies to a customer availing the services of a hotel, should be held contrary to s...

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Posted Under: Income Tax |

Do hire charges with respect to hire equipment automatically call for TDS u/s 194C?

In the absence of any such acceptable material, the conclusion of the AO in treating the hiring of equipment as one falling under the category of sub-contract for provision of labour or the conclusion of the CIT(A) that at least 10% of the total payment would have been incurred by way of labour charges by the respective owners, cannot be ...

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Posted Under: Income Tax |

Whether hire of trucks without contract for carriage is covered under Sec 194C?

There is no material on record brought by the AO to prove that there was any written or oral agreement between the assessee and the transporter for carriage of goods. There is no material to establish that any payment exceeded the prescribed limits during the financial year. As per the decision of the HC in case of United Rice Mill Ltd (3...

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Posted Under: Income Tax |

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