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2018 (9) TMI 1399 - AT - Income TaxTDS u/s 194J OR 194C - non tds on payments made by the assessee company as professional fees - whether services received by assessee from BEL falls within the ambit of “professional and technical services”? - Held that:- Section 194J refers to definition of ‘fees for technical services’, as having same meaning as per Explanation 2 to sub clause (vii) of subsection (1) of section 9. In this case the agreement very clearly spells out that BEL undertook assembling of raw materials provided by assessee in respect of module M1 and M2, as per specifications provided by assessee. No doubt certain training has been provided by assessee to the engineers of BEL, however these rendering of training has been separately remunerated by BEL to assessee. Thus payment received by BET towards the work carried on under Phase II of the agreement, will not fall under the definition of the term professional services as no new technical consultancy has been offered by BEL to assessee. No fault in the observations of Ld.CIT (A) in holding that the work undertaken by BEL is covered under the provisions of section 194C. Accordingly we dismiss the ground raised by the revenue.
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