Case Law Details
Transocean Offshore Deepwater Drilling Inc. Vs Addl. CIT (ITAT Delhi)
CBDT itself in two of its circulars. In Circular No. 4/2008 dated 28th April 2008 it was clarified that Service tax paid by the tenant doesn’t partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of Service Tax. Therefore, it has been decided that tax deduction at source) under sections 194-1 of Income Tax Act would be required to be made on the amount of rent paid/payable without including the service toot. In Circular No. 1/2014 dated 13th January 2014, it has been clarified that service tax is not to be included in the fees for professional services or technical services and no TDS is required to be made on the service tax component under Section 194J of the Act.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This appeal is by the assessee against the order dated 10/02/2016 passed by CIT(A)-2, Noida for Assessment Year 2011-12.
2. The grounds of appeal are as under:-
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