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2015 (3) TMI 2 - AT - Income TaxShort deduction of tax - application of wrong provision - payments made for hiring of vehicles and other equipments - Assessee had deducted TDS u/s. 194C and not u/s. 194I - Assessee had deducted TDS u/s. 194C and not u/s. 194I - Held that:- In respect of rig service drilling the payments are made for actual use for the services and and the assess.ee has no control over the same. It is further clear therefrom that the possession and control of the rig always remained with the provider, In the circumstances, in our view, it is only the provisions of S.194C and not provisions of S.194I that are applicable.See M/s. Modern Transport M/s, ITO [2011 (8) TMI 1057 - ITAT BANGALORE] With respect to crane hire charges showed that the payment is not made for any rent or actual movement/transport of goods-arid material and hence, it was rightly treated as contract for carrying of work and tax has been deducted in terms of S.194C. With, respect to DG set, the charges are on hourly basis, as seen from the copies of invoices and not as rent for equipment, The DG set is under the control and operation of the service-provider and the expense on diesel as well as maintenance are borne by the DG owner, In this view of the matter, in respect of these payments also, the provisions of S.1941 are inapplicable, and the assessee has correctly deducted tax in terms of S.194C of the Act. - Decided against revenue.
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