Case Law Details
Rangaswamy Jeevanantham Vs Superintendent (Madras High Court)
The Madras High Court recently addressed the dispute in the case of Rangaswamy Jeevanantham vs Superintendent, focusing on GST liability and the alleged erroneous TDS deduction under section 194H of the Income Tax Act. The court ordered a statutory appeal in response to the petitioner’s challenge against the TDS deduction.
In the judgment delivered on 01.09.2023, the court noted the petitioner’s claim that he was an employee of Smart Way India Enterprises LLP, Coimbatore, and argued that the TDS deductions made on payments for services rendered were inc+orrect under section 194H of the Income Tax Act, 1961 (the I-T Act). The petitioner contended that he was wrongly classified as an agent, subjecting him to TDS.
The petitioner’s counsel referred to the appointment letter dated 12.11.2015, emphasizing that tax liabilities, including those under the I-T Act, were to be borne by the limited liability partnership. Therefore, the petitioner asserted his status as an employee entitled to variable remuneration, rather than an agent.
However, the respondent, represented by Mr. Ramesh Kutty, senior standing counsel, argued that the petitioner was indeed an agent of the limited liability partnership and was liable for GST on a forward charge basis for the commission received. Consequently, the respondent opposed any interference in the matter.
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