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2016 (5) TMI 1254 - AT - Income TaxTDS u/s 194J OR 194C - nature of services received by the assessee by incurring data storage expenses - Held that:- CIT(A) after having examined and perused agreements with the service providers and after going into the various services provided reached a conclusion that the outsourced services do not require any kind of technical and professional expertise and are just simple and repetitive nature of work such as document storage, documents delivery and collection services and documents management services. The ld CIT(A) examined the contract with Writer Information Management Services and found that very basic services were contracted and rendered by the said party involving no special technical skill or professional qualification. On the basis of the rival arguments and perusal of the various records as placed before us we find that the work assigned to the service provider was not a technical or professional work which required special skills but simple, basic and repetitive nature of work and we are inclined to opine that the order of CIT(A) is correct and deserved to be upheld - Decided against revenue TDS u/s 194J OR 194C - event management expenses - Held that:- The assessee has paid ₹ 1,69,08,818/- to M/S Reliance Transport and Travel Pvt Ltd as reimbursement expenses and tour leader expenses. These reimbursements were made by the assessee to the said company for arranging tickets, hotel bookings and providing leaders to see the arrangement at Agra. As is seen from the nature of services availed , we do not find any sort of professional or technical or consultancy but rather routine services which are provided by the travel agents in the normal course of business which were purely of contractual nature. It can be seen from nature of reimbursement for the services availed that these are in the nature of simple contractual case where only the provisions of 194C could be applied to deduct and deposit TDS and not 194J which deals with the deduction and deposit of TDS in case of technical, professional and consultancy services. Looking to the facts in the light of provisions of section 194C vis a vis 194J we find that the order of FAA is correct and needs to be upheld. - Decided against revenue Applicability of TDS provisions u/s 194D of the Act on Service Tax element in respect of ‘insurance commission‘ - Held that:- TDS is required to be deducted and paid to the Govt Treasury on the income payable only which means that certainly the service tax component on the commission is not liable to TDS as the same is not an income of the assessee. The provisions of section 194D and 194I have to be seen in the light of the two circulars no 4/2008 dated 28.04.2008 and circular no 1/2014 [F.No. 275/59/2012-IT(B)] dated 13.1.2014. In circulars no. 4/2008 dated 28.04.2008 CBDT has clarified that TDS is not required to be deducted on service tax on rent u/s 194I.- Decided against revenue
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