Storage Charges akin to Rent, Require 20% TDS under Section 194I

CIT (TDS) Vs B. Arunkumar Trading Ltd (Bombay High Court) Introduction: In a significant judgment, the Bombay High Court addressed the applicability of Tax Deducted at Source (TDS) on storage charges in the case of CIT (TDS) vs. B. Arunkumar Trading Ltd. The court deliberated whether the charges paid for storage facilities should attract TDS under Section 194I or Section 194C of the Income Tax Act, 1961, ultimately impacting the rate at which tax is deducted. Detailed Analysis: The core issue revolved around the classification of storage tanks used by B. Arunkumar Trading Ltd. for the storage ...