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2012 (8) TMI 742 - AAR - Income TaxTransmission, Wheeling & SLDC Charges - Whether TDS provisions u/s 194J or 194C will apply ? - Held that:- According to the agreement entered into by the applicant with RVPN and from a survey of the duties and obligations of RVPN viz-a-viz the applicant, it is not possible to accept the argument that for maintaining proper and regular transmission of electrical energy, no rendering of technical services is involved - It is not a mere case of RVPN maintaining its system with the help of its professional and technical personnel. It is also a case of such personnel ensuring regular and consistent transmission of electrical energy at the grid voltage at the distribution point of the applicant - argument on behalf of the applicant that in ensuring due and proper transmission of electrical energy from the generation point to the distribution point of the applicant, the services of technical personnel are not needed cannot be accepted, thus that the transmission involves the rendering of technical services and the consideration paid towards transmission charges partakes the applicant is obliged to withhold tax thereon under section 194J of the Act - against assessee. SLDC Charges are paid to the State Load Dispatch Centre constituted for the purpose of exercising the powers and discharging the functions under Part V of the Electricity Act - The centre is responsible for optimum scheduling and dispatch of electricity within the state in accordance with the contracts entered into with licencee and generating companies. It is to monitor grid operations, to keep accounts of the quantity of electricity transmitted through the state grid and exercise supervision and control over the transmission system, thus considering the nature of the obligations placed in the centre, and the role it performs, it cannot be said that it is rendering any technical services to the applicant - no withholding of tax in terms of section 194J or 194C of the Act is called for on the said charges - in favour of assessee.
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