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2008 (2) TMI 515 - ITAT AHMEDABAD-BLiability to deduct tax at source u/s 194J - Services rendered by SBI - Payments toward MICR charges is Managerial/Technical Services as per Explanation (b) of section 194J r/w Explanation 2 to section 9(1) or Not ? - HELD THAT:- The definition of "fees for technical services" is very wide. It, in our opinion, covers within its ambit any managerial, technical or consultancy services rendered by a person. Since other banks pay to the State Bank of India charges for the MICR facilities regarding identifying, reading and clearing cheques through its special kind of machines, the same in our view is in the nature of fees for technical services and, therefore, will be liable for TDS. The service of this nature, in our opinion, involves human skills as well as computerized machines. It is not automatic. In that sense it is no hiring/leasing or making available the technical equipment working on its own. But it is fully supported by services of Personnel and requires human application of mind along with technical equipments. Therefore, the State Bank of India was managing and clearing of the cheques through MICR Centre by rendering managerial services which falls within the definition of technical services. We, thus, do not find any illegality or infirmity in the order of the CIT(A) holding that the assessee is liable to deduct the tax at source as the provisions of section 194J, in our opinion, were clearly applicable. In the result, the cross objections are dismissed.
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