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2018 (3) TMI 1304 - AT - Income TaxTDS u/s 194J - out of pocket expenses and payment to auditors - non deduction of tds - CIT-A deleted the tds levy - Held that:- As per the AR some amount was given to auditor for out of pocket expenses were paid by the assessee after deduction of tax. So in considered opinion, ld. CIT(A) has passed detailed and reasoned order, therefore, we do not want to interfere in the order passed by the ld. CIT(A) hence, this ground of appeal is dismissed. TDS u/s.194H or 194C - commission payments made to Sahayak - Held that:- Payment is made to Sahayak on percentage basis on various parameters like number of farmers pouring milk, fat and SNF factor in milk, quantity to mild collected etc. which ensures payment is commensurate with work performed. The nature of work carried out by the Sahayak are covered by provisions of section 194C and accordingly tax was deducted on the same accordingly. On the basis of the consistency, we dismiss this ground of appeal of department. Non deduction of tax at source under section 194J OR 194C - short deduction of tax on payment of commissioner charges paid to dairies - Held that:- Assessee provided raw milk and necessary materials to the dairies for processing as per specification of assessee. The dairies custom pack it on job work basis. Assessee deducted tax u/s.194C on conversion charges ₹ 19.77 crores paid to such dairies since the job work falls within definition of ‘work’ u/s.194C. CBDT circular No.13/2006 dated 13th Dec, 2006 relied. Further stated the services rendered by the dairies are not technical services since the dairies are not expert on any technology which they could provide to the assessee, nor they provide any managerial services/consultancy services since there is no advice given by dairies to the assessee. The dairies are not assigned any exclusive work relating to quality check but are assigned work relating to conversion/processing of milk and milk products, wherein one of the requirements is to ensure quality parameters. Payment made for getting jobs done like testing, inspection of materials, etc. were of nature of material & labour contract liable to TDS u/s.194C.
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