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2014 (5) TMI 510 - AT - Income TaxTDS u/s 194C or 194J - comprehensive maintenance contracts for its various equipments, installations, viz. Air Conditioners, Lifts, Vehicles and Engine alternator services - Failure to deduct TDS – Held that:- the work of a cobbler, a carpenter, barber, weaver, et. al. is all highly skilled and specialized, when considered from the stand point of a common, lay person. However, the technology involved or, rather, the interface therewith, as required, is fairly simple and of low calibre; the gadgets involved being of everyday use and, therefore, of common user and repair. That is, the job involves work of regular, low-technical nature, which could thus be contracted out on a pre-determined basis in-as-much the routines involved or to be followed are well established. - Relying upon Tata AIG General Insurance Co. Ltd. Versus Income-tax Officer (OSD) 3(2) [2010 (10) TMI 359 - ITAT, MUMBAI], the payments made have been correctly classified for the purpose of deduction of tax at source u/s.194-C, as against u/s. 194-J - Decided in favor of assessee. TDS on vehicle hiring charges - Held that:- the arrangement is not toward the provision of carriage services, as understood by the first appellate authority, but for making available cars for the assessee's personnel. At the same time, clearly, the arrangement also includes making available services of a chauffeur as well as meeting the fuel cost of transportation. The same cannot by any means be considered as toward car rental. Subject to a reasonable deduction in respect of charges in its respect, based on the materials and/or information led by the assessee, which would though stand to be considered as toward contractual services covered by section 194-C, the balance amount would fall to be governed by u/s.194-I. - Decided against the assessee. Recovery of TDS where the tax on the relevant income stands paid by the deductee. - Held that:- The TDS provisions are only a mode and manner of collecting the tax of the deductee (through the deductor), so that there could be no double payment of tax, even as in fact clarified by the Board itself per its circular - The onus to exhibit that the tax on the relevant income has been assessed or brought to tax, so that no further tax is required to be deducted/paid in its respect, is on the assessee - The AO directed to allow the assessee reasonable opportunity to satisfy him ans decide the matter after due verification – Decided partly in favour of Assessee.
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