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2015 (11) TMI 266 - AT - Income TaxTDS u/s 194C or u/s 192 - payment to Self Help Groups (SHG) - whether no contractual relationship between the payees, i.e. the Self Help Groups (SHG) and Greater Hyderabad Municipal Corporation (GHMC) and consequently payments made to the SHGs are not liable for TDS? - Held that:- TDS provisions are not applicable. See Greater Municipal Corporation, Central Zone Hyderabad [2015 (10) TMI 2320 - ITAT HYDERABAD] wherein held that it is clear that the allotment of work by the assessee to the SHGs is not by way of contract but is engagement of workers for a fixed period. The workers are being paid as per the agreed terms and conditions and the aggregate amount is paid to the group and not to any particular person. Therefore, as rightly held by the CIT (A), there is no contractor-contractee relationship but is more in the nature of employee-employer relationship as the assessee is also making contributions to the EPF and ESI and as rightly pointed out by the ld CIT (A), the payments made to an individual is not exceeding the prescribed limit u/s 192 of the I.T. Act, the TDS provisions are not applicable to the facts of the case - Decided in favour of assessee.
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