East India Hotels Ltd and another v. CBDT and another (320 ITR 526)

Facts:

•        The assessee offers various facilities to its guest apart from boarding and lodging

•        The question before the Bombay High Court was whether the same should be subject to TDS u/s 1 94C

Decision:

•        The word “carrying out work” u/s 194C is limited to any work which on being carried out culminates into a product or result (reliance was placed on the decision of the SC in case of Associated Cements)

•        Circular 681 dated 3 March 1994 to the extent it applies to a customer availing the services of a hotel, should be held contrary to section 1 94C

•        The word work has to be understood in the limited sense and would extend only to the service contracts specifically included in (the then) Explanation III to section 194C.

More Under Income Tax

Posted Under

Category : Income Tax (28069)
Type : Articles (17832)

Leave a Reply

Your email address will not be published. Required fields are marked *

Featured Posts