Composite consultancy contracts attract TDS on gross payments

Muthoot Fincorp Limited Vs JCIT (ITAT Cochin) ITAT Cochin dismissed Muthoot Fincorp’s appeal, holding that payments under a 5-year consultancy agreement with its group company were part of a composite contract. TDS must be deducted on the full amount including reimbursements, and the second proviso to Section 40(a)(ia) is not retrospective; In Muthoot Fincorp Limited vs JCIT, ITAT Cochin upheld the disallowance of ₹6.01 crore, rejecting the claim that reimbursements were exempt from TDS. The Tribunal ruled that TDS applies on gross contractual payments, following settled SC precedents; M...