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2011 (3) TMI 598 - AT - Income Tax
Assessee in default - TDS u/s 194C - Composite contract (indivisible contract) or separate contract - Held that:- when parties enter into two separate contracts, one for material and one for labour, the transaction would not be one and indivisible, but would fall into two separate agreements, one of work or service and the other of sale. In such case, as rightly highlighted by the assessee, the provisions of section 194C could apply only to the labour contract and not to the materials contract - when the assessee was not required to deduct tax towards the payment on supply portion, there was no question whatsoever in charging interest under section 201(1A) of the Act - Decided in favor of the assessee