Common Area Maintenance Charges Fall Under TDS Section 194C: Delhi HC

CIT (TDS)-1 Vs Liberty Retail Revolutions Ltd (Delhi High Court) Delhi High Court has delivered a definitive ruling on the classification of Common Area Maintenance (CAM) charges for the purpose of Tax Deducted at Source (TDS), affirming that these charges are subject to TDS under Section 194C of the Income Tax Act, 1961 (payments for works contracts), rather than Section 194-I (rent). This decision came in an appeal filed by the Commissioner of Income Tax (TDS)-1 against Liberty Retail Revolutions Ltd, concerning the Assessment Year 2011-12. The High Court’s verdict reinforces the posit...