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Composite consultancy contracts attract TDS on gross payments
Case Law Details
- Case Name
- Muthoot Fincorp Limited Vs JCIT (ITAT Cochin)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2006-07
- Courts
- All ITAT, ITAT Cochin
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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 ...
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