Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1865 - AT - Income TaxTDS u/s 194C - payment made by the assessee to M/s.Zen Chinese Foods for supply of chinese good was as per the terms of contract - “Contractor” and “Contractee” between the owner and the supplier as per terms of agreement in the name and style of “FOOD SUPPLY ARRANGEMENT” - HELD THAT:- Assessee had entered into an agreement viz., ‘Food Supply Arrangement’ with M/s. Zen Chinese Food, whereas assessee was the owner of the restaurant and M/s. Zen Chinese Food was a supplier. The relevant terms of the contract has already been incorporated above from which it can be seen that it mis purely a supply arrangement and there is nothing to interfere that there is any kind of works contract. Here it is not disputed by the department that the supplier was procuring the equipments as well as raw materials and supplying Chinese food to the assessee. Once that is so, then such a supply agreement ostensibly will fall in the category of ‘works contract’ so as to invoke TDS provision u/s. 194C. Thus, the order of the ld. CIT(A) holding that it is a goods of supply and purchase of material on which VAT has been charged then such a payment for supply will not entail TDS provision u/s.194C and accordingly, no disallowance u/s.40(a)(ia) can be made. We hold that no disallowance u/s 40(a)(ia) can be made because no TDS provision is applicable u/s 194C on a payment for supply and purchase of material on which VAT has been charged. - Decided against revenue.
|