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2010 (10) TMI 359 - AT - Income TaxTDS on reinsurance commission - Survey - Assessee in default - there was no agency relationship between the assessee and Bajaj and the arrangement between the parties was to share the premium, risk etc. on principal-to-principal basis - assessee company has provided reinsurance to the insurance company and if the reinsurance companies have reduced the premium directly from the premium payable by the insured, such a deduction will not attract provisions of section 194D - Decided in the favour of the assessee The next issue relating to the liability of the assessee to deduct tax at source from the payment of car hire charges - It is observed that from the details and documentary evidence furnished by the assessee, it was found by the ld. CIT(A) that specific cars were not made available at the disposal of the assessee and the vendors were required to provide any cars belonging to a particular category for transportation of employees and guests of the assessee as per its requirement - the relevant contracts entered into by the assessee with the concerned vendors for hiring of cars which clearly establish that there being no specific cars identified and earmarked for the assessee and it was only the arrangement for providing cars of a particular category to facilitate transportation of the employees and guests of the assessee from one place to another, the tax at source from the payment of car hire charges was required to be made by the assessee as per the provisions of section 194C read with Explanation (iv)(c) thereto - Decided in the favour of the assessee what is to be seen in order to ascertain whether section 194C is applicable or section 194J is the exact nature of work against which payment is made and not to whom the said payment is made and even the ld. D.R. has not disputed this position - The work involved was mainly for interior work done at the call centres of the assessee and it involved making of partitions, doors, carpeting and flooring, painting, electrification etc - the designing charges were paid separately by the assessee and tax at source was deducted from the said payment as per the relevant provisions - Decided in the favour of the assessee
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