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2018 (2) TMI 53 - AT - Income TaxGross receipts for the purpose of determination of income u/s 44BB - Receipts on account of reimbursements of expenses incurred on supply of materials inclusion - Held that:- It was not in dispute that the amount had been received by the assessee. Therefore the AO added the said amount which was received by the nonresident company rendering services under the provisions of section 44 BB to the ONGC and imposed the income tax thereon. He was justified in doing so. - Decided against assessee. TDS - Reimbursement of service tax and interest on service tax - Held that:- This issue is to be decided is in favour of the assessee in case of DIT Vs. Mitchell Drilling International Pvt. Ltd. [2015 (10) TMI 259 - DELHI HIGH COURT] wherein the Jurisdictional Delhi High Court decided the issue in favour of the assessee. In Circular No. 4/2008 dated 28th April 2008 it was clarified that “Service tax paid by the tenant doesn't partake the nature of “income” of the landlord. The landlord only acts as a collecting agency for Government for collection of Service Tax. Therefore, it has been decided that tax deduction at source) under sections 194-1 would be required to be made on the amount of rent paid/payable without including the service toot. In Circular No. 1/2014 dated 13th January 2014, it has been clarified that service tax is not to be included in the fees for professional services or technical services and no TDS is required to be made on the service tax component under Section 194J.
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