Wastage charges doesn’t involve any payment and hence TDS u/s 194C not deductible

P.R. Gold and Silver Craft Vs DCIT (ITAT Chennai)

ITAT Chennai held that in case of wastage charges there is no payment and once there is no payment there is no question of deduction of TDS under section 194C of the Income Tax Act.

Facts-

The only common issue in these two appeals of assessee is as regards to the order of CIT(A) confirming the action of the AO in making disallowance of wastage claimed in manufacturing of gold ornaments by invoking the provisions of section 40(a)(ia) of the Act for non-deduction of TDS u/s.194C of the Act. For this, assessee has raised various grounds which need not to be reproduced. The facts and circumstances are exactly identical in both the years and hence, we will take the facts from assessment year 2013-14.

Conclusion-

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