TDS on School bus fees to be deducted U/s. 194C – HC

ACIT (TDS) Vs. Lotus Valley Education Society (Allahabad High Court)

In the case of ACIT (TDS) Vs. Lotus Valley Education Society it was held by Allahabad High Court that explanation-III to sub section (2) of Section 194-C clearly provides that ‘work’ includes carriage of goods and passengers by any mode of transport other than by railways, so TDS on School Bus Fees Paid to Transporters is governed by Section 194C and not by Section 194I. 

Allahabad HC ruling in ACIT (TDS) Vs. Lotus Valley Education Society clarifies TDS on School Bus Fees under Section 194C, not 194I. Full text available for download.

Section 194-C, which clearly provides under explanation-III to sub section (2) of Section 194-C that ‘work’ includes carriage of goods and passengers by any mode of transport other than by railways

Word ‘rent’ in the explanation to 194-I includes ‘plant’ but that ‘plant’ has not been defined under definition clause of Section 2 of the Act, which is general definition clause under the Income Tax Act.

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