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S.195 TDS is deductible only on Taxable Portion
Case Law Details
- Case Name
- Transmission Corporation Of A.P. Ltd. And Anr. Vs. Commissioner Of Income Tax, A.P. (Supreme Court of India)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- Supreme Court of India
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Answers given by the High Court that (i) the assessee who made the payments to the three non-residents was under obligation to deduct tax at source under Section 195 of the Act in respect of the sums paid to them under the contracts entered into; and (ii) the obligation of the respondent-assessee to deduct tax under Section 195 is limited only to appropriate proportion of income chargeable under the Act, are correct.
Supreme Court of India
Transmission Corporation Of A.P. Ltd. And Anr.
Vs.
Commissioner Of Income Tax, A.P.
Appeal (Civil) 594-96 Of 1985
Date Of Judgment: 17/08/...
Sec 194C / 194J etc are not mentioned here.
Even these section says “on income comprised there in”.
But due the high-handed CBDT [which considers itself a legislature to tax] circular makes it compulsory to deduct on total amount.