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2014 (8) TMI 462 - ALLAHABAD HIGH COURTTDS on hiring of Buses on kilometer running basis - Liability to deduct TDS u/s 194C r.w. Clause (c) of Explanation III – Held that:- The Tribunal has rightly held that the contract would indicate that the assessee has not taken possession of the buses - the Tribunal was correct in coming to the conclusion that the provisions of Section 194-C and not Section 194I of the Act were attracted - the agreement between the assessee and the transporters was not akin to the taking of any 'plant' or 'machinery' on lease or any other similar arrangement - the assessee had correctly deducted tax at source u/s 194C of the Act. The Tribunal has rightly noted that the buses belong to the contractor and were provided on hire to UPSRTC - The payment was to be made on kilometer basis - The contractor was responsible for bearing running cost, maintenance and incidental expenses including the salary of the driver - The contract contained a specific stipulation in respect of the total distance which could be traversed on any given operating day - The contract also provided that the vehicle would run on the route specified by the UPSRTC – Decided against Revenue.
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