Section 194C

Don’t Take TDS Lightly

Income Tax - Nowadays delay in payment of TDS and in TDS return Filing makes an assessee liable to Late Payment Interest, Late Payment Penalty, Late Filing Fees, Late Filing Penalty and Further makes him liable to prosecution under the provision of the Income Tax Act, 1961....

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TDS on Electricity Bill reimbursement to landlord

Income Tax - Issue: Whether the TDS provisions are applicable on payment of electricity reimbursement to landlord in case of there is no mark-up? Opinion The opinion is based on the following two questions: Whether the invoice from landlord as same from Electricity Department? Whether the invoice from landlord is composite supply? The first question h...

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TDS Rate Chart for AY 2019-20 / FY 2018-19

Income Tax - TDS Rate Chart or TDS Rate Table For Assessment year 2019-20 (AY) / Financial Year (FY) 2018-19 In the case of a person other than a company (Resident and Non-Resident) i.e. Individual, HUF, BOI, AOP, Artificial Judicial Persons. Partnership Firm (Including LLP) and for domestic company and Foreign Companies. TDS Rates are after consideri...

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Criteria to decide whether any service rendered will fall U/s. 194C or 194J: An Analysis

Income Tax - Whether TDS is deductible u/s 194C or 194J is always a matter of concern in day to day business world. Today an attempt has been made to provide the basis to reduce such concern. The write-up can be summed up in following parts: 1. Payment to Contractors – Section 194C 2. Fee for professional or technical services – Section 194J 3...

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TDS on Power Transmission & Wheeling Charges u/s 194J, 194I & 194C

Income Tax - Has the Contentious Issue of Applicability or Otherwise of TDS on Transmission & Wheeling Charges of Power Transmission Companies u/s 194J, 194I & 194C of the Income Tax Act, 1961, finally Settled???...

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Section 194C-: TDS on auto rickshaws and/or buses used for transportation of goods

Income Tax - Section 194C(6) provides exemption to small good carriage contractor/transporter (owning not more than 10 goods carriage at any time during the previous year) on furnishing of PAN along with the declaration to that effect to deductor from TDS....

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SC asked Samsung to reply why it is not liable to deduct tax in respect of goods outsourced for manufacturing

Income Tax - The Supreme Court has sought a reply from Samsung India Electronics on the I-T department plea that the firm is liable to deduct tax in respect of goods outsourced for manufacturing. The issue has been raised by the income-tax department saying that consumer electronics and home appliances manufacturer Samsung India Electronics Ltd is li...

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CBDT Expand Definition of Professionals

Income Tax - The Central Board of Direct Taxes (CBDT) expanded the scope of professional services to cover sportspersons, umpires and referees, making them liable for a higher tax deduction at source (TDS) at the rate of 10% against 1-2%. ...

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TDS U/s. 194C deductible on charges towards installation of set top boxes

JCIT Vs Bharat Business Channels Ltd. (ITAT Mumbai) - Installation of set-top box amounted to works contract and no technical expertise was required so as to make the assessee liable to deduct tax under section 194J....

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TDS not deductible on payments on behalf of clients as C&F Agent

M/s. KGL Network (P) Ltd. Vs The ACIT (ITAT Delhi) - M/s. KGL Network (P) Ltd. Vs ACIT (ITAT Delhi) Assessee-company made payments on behalf of its clients as Clearing and Forwarding (C&F)Agent which were reimbursed to the assessee-company. The  assessee-company did not make claim of deduction in the P & L A/c. Similar claim of assessee-comp...

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TDS U/s. 194C is not applicable to transactions of purchase of goods

Eshan Minerals Pvt. Ltd Eshan Minerals Pvt. Ltd Vs DCIT (ITAT Pune) - TDS requirement under section 194C is not applicable to transactions of purchase of goods, therefore, no disallowance under section 40(a)(ia) could be made....

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Merely nomenclature of expense does not conclusively determine character and nature of expense

SK. Sajjad Ali Vs ITO (ITAT Kolkata) - Moreover, it has to be kept in mind by the AO that merely because nomenclature of expense is given as ‘Labour Charges Paid’ does not conclusively determine the character and nature of the expense claimed. ...

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TDS on execution of orders by one of the constituents of JV

KCL Amrcl joint Venture Vs ITO (ITAT Hyderabad) - In the given case, memebrs of JV decided to form a JV only to secure the orders and execution of the orders was to be done by one of the constituents of the JV. JV was formed for the benefit of the individual members and a business was carried on for the benefit of the businessman. There was no sub-...

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TDS on payments for procuring or canvassing for advertisements

Circular No. 05/2016- Income Tax - (29/02/2016) - Law Related to Tax Deduction at Source (TDS) on payments by television channels and publishing houses to advertisement companies for procuring or canvassing for advertisements....

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TDS on payments for production of content or programme for telecasting

Circular No. 04/2016- Income Tax - (29/02/2016) - Law Relating to Tax Deduction at Source (TDS) on payments by broadcasters or television channels to production houses for production of content or programme for telecasting....

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No TDS on transportation of gas if it is carried out in furtherance of contract for sale of gas- CBDT

Circular No. 9/2012-Income Tax - (17/10/2012) - Circular No. 9/2012 Representations have been received from various sections of the Industry on the difficulties faced in the matter of Tax Deduction at Source on Gas Transportation Charges paid by the purchasers of Natural gas to the sellers of gas....

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Cooling Charges Paid are not covered U/s. 194I but are covered U/s. 194C

Circular No. 1/2008-Income Tax - (10/01/2008) - CIRCULAR NO. 1/2008-Income Tax Representations have been received from various quarters regarding applicability of the provisions of Section 194-I to cooling charges paid by the various customers to the owners of cold storages. It has been represented that the cold storage owners provide a composite...

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Circular No. 715-Income Tax dated 8-8-1995

Circular No. 715-Income Tax - (08/08/1995) - Circular No. 715-Income Tax Clarifications on various provisions relating to tax deduction at source regarding changes introduced through Finance Act, 1995 The Finance Act, 1995, has enlarged the scope of income-tax deduction at source by making various amendments. In regard to the changes introdu...

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Recent Posts in "Section 194C"

TDS U/s. 194C deductible on charges towards installation of set top boxes

JCIT Vs Bharat Business Channels Ltd. (ITAT Mumbai)

Installation of set-top box amounted to works contract and no technical expertise was required so as to make the assessee liable to deduct tax under section 194J....

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TDS not deductible on payments on behalf of clients as C&F Agent

M/s. KGL Network (P) Ltd. Vs The ACIT (ITAT Delhi)

M/s. KGL Network (P) Ltd. Vs ACIT (ITAT Delhi) Assessee-company made payments on behalf of its clients as Clearing and Forwarding (C&F)Agent which were reimbursed to the assessee-company. The  assessee-company did not make claim of deduction in the P & L A/c. Similar claim of assessee-company has been allowed in earlier and subs...

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Don’t Take TDS Lightly

Nowadays delay in payment of TDS and in TDS return Filing makes an assessee liable to Late Payment Interest, Late Payment Penalty, Late Filing Fees, Late Filing Penalty and Further makes him liable to prosecution under the provision of the Income Tax Act, 1961....

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Posted Under: Income Tax |

TDS on Electricity Bill reimbursement to landlord

Issue: Whether the TDS provisions are applicable on payment of electricity reimbursement to landlord in case of there is no mark-up? Opinion The opinion is based on the following two questions: Whether the invoice from landlord as same from Electricity Department? Whether the invoice from landlord is composite supply? The first question h...

Read More
Posted Under: Income Tax |

TDS U/s. 194C is not applicable to transactions of purchase of goods

Eshan Minerals Pvt. Ltd Eshan Minerals Pvt. Ltd Vs DCIT (ITAT Pune)

TDS requirement under section 194C is not applicable to transactions of purchase of goods, therefore, no disallowance under section 40(a)(ia) could be made....

Read More

Merely nomenclature of expense does not conclusively determine character and nature of expense

SK. Sajjad Ali Vs ITO (ITAT Kolkata)

Moreover, it has to be kept in mind by the AO that merely because nomenclature of expense is given as ‘Labour Charges Paid’ does not conclusively determine the character and nature of the expense claimed. ...

Read More

TDS on execution of orders by one of the constituents of JV

KCL Amrcl joint Venture Vs ITO (ITAT Hyderabad)

In the given case, memebrs of JV decided to form a JV only to secure the orders and execution of the orders was to be done by one of the constituents of the JV. JV was formed for the benefit of the individual members and a business was carried on for the benefit of the businessman. There was no sub-contract relationship existed between JV...

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TDS on Transport Charges : Benefit of Section 194C(6) cannot be denied for violation of section 194C(7)

Income Tax Officer Vs M/s. Sugarchem (ITAT Mumbai)

ITO Vs M/s. Sugarchem (ITAT Mumbai) The AO in the course of assessment proceedings requested the assessee to furnish the reasons why no TDS was deducted in respect of transportation charges. The assessee furnished PAN details of the transporters to the tune of 67,24,412/- out of 80,23,971/- in respect of nine transporters referred to in [...

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TDS on payment to Carrier under contracts for transporting petroleum products in business is deductible U/s. 194C and not U/s./ 194I

Commissioner of Income Tax Vs M/s Indian Oil Corporation Ltd. (Uttarakhand High Court)

Assessee is obliged to deduct tax on the payment made by it to the Carrier under the contracts for transporting the petroleum products in the business in which the respondent assessee is engaged. On the one hand, it is the case of the appellant Department that the case of the respondent assessee falls under Section 194-I of the Income Tax...

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TDS was not applicable on Hiring of Vehicles prior to Amendment in Sec 194-I

The Commissioner Of Income Tax-1 Vs. M/s. Pioneer Personalized Holidays Pvt. Ltd (Kerala High Court)

CIT Vs. M/s. Pioneer Personalized Holidays Pvt. Ltd (Kerala High Court) Section 194C of the Act speaks of any payment made to any resident, referred to as a contractor, for carrying out any work including supply of labour, in pursuance of a contract between the contractor and a specified person. Here, the contract if at all, […]...

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