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Section 194I – TDS not deductible on transmission and wheeling charges paid by power trading companies as same in not rent
Case Law Details
- Case Name
- M/s. Grid-Co Limited Vs Asst. Commissioner of Income- Tax (ITAT Cuttack)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2008-09
- Courts
- ITAT Cuttack
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GRID-CO Limited Vs. ACIT (ITAT Cuttack)-The Tribunal observed that Circular No.5 and Circular No.736 had given restricted meaning to the word ‘rent’. However, in view of the decisions relied by the tax department, the word ‘rent’ is to be given a wider meaning. Accordingly, the contention of the taxpayer on this aspect was rejected. Since, the taxpayer supplied power through the transmission lines of OPTCL, the taxpayer merely obtained a service from OPTCL which had the infrastructure in the form of equipment and transmission lines.
Therefore, it could not be said th...
electricity is a kind of service then why we dont charge service tax and deduct TDS on payment of electricity expenses?? Please do reply as soon as possible?