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2011 (11) TMI 412 - AT - Income TaxWhether it is a payment being contract of service or a rent for hiring a plant - Circular No. 558 dated 28.3.1990 issued by the CBDT - Rule 8 of the ITAT's Rules - TDS u/s 194I or 194C - On the payments made to the transporters for hiring of busses - The brief facts of the case are that the assessee is a government company under the administrative control of Ministry of Defence and manufactures defence equipments for Ministry of Defence - In the circular, board has considered this aspect and was of the view that where a vehicle is given on hire along with provisions of a driver for use of carrying of the passengers for fixed hours than it is a service contract for carrying out the work - the hiring of the buses would not be akin to taking of any plant and machinery on lease - Held that: assessee would be liable to deduct the tax on such payment under sec. 194C of the Act and not under sec. 194I of the Act - Decided in favor of the assessee
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