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Execution of outsourced transportation work by third parties without assistance of outsourcer is sub-contract liable to TDS
Case Law Details
- Case Name
- M/s Palam Gas Service Vs Commissioner of Income Tax (Himachal Pradesh High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Himachal Pradesh HC
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Brief of the case:
Himachal Pradesh High Court in the case of M/s Palam Gas Service Vs. CIT held that execution of outsourced transportation work without any assistance from the outsourcer is a clear case of sub-contracting making the person outsourcing his contract liable to deduct tax on the payments made to sub-contractors u/s 194C.
Facts of the case:
The assessee is engaged in the business of purchase and sale of LPG cylinders under the name of M/s Palam Gas Service. During the course of assessment proceedings, it was noticed by the Assessing Officer that the main contract of the assessee...
Author Info
My client could not submit PAN of freight contractor during assessment at AO level to satisfy sec.194C(6) requirement and thereby disallowed. But later he obtained PAN and submitted to CIT (Appeals). Can freight expenditure be disallowed u/s.40(a)(ia) read with u/s.194C simply taking literal meaning of sec.194C(6),that at the time of payment assessee did not obtain PAN and it is not curative at later stage.
My client could not submit PAN of freight contractor duing assessment at AO level to satisfy sec.194C(6) requirement and thereby disallowed. But later he obtained PAN and submitted to CIT (Appeals). Can freight expenditure be disallowed u/s.40(a)(ia) read with u/s.194C simply taking literal meaning of sec.194C(6),that at the time of payment assessee did not obtain PAN and it is not curative at later stage.