Applicability of TDS u/s 194I or 194C, Income Tax

[HARSHA JOSHI]

WHILE MAKING PAYMENT OF WHARFRAGE CHARGES TO MAHARASHTRA MERITIME BOARD, TDS U/S 194I  @22.66% WAS DEDUCTED BY US. MMB IS NOT ACCEPTING IT & WITHOUT OBTAINING CERTIFICATE U/S 197(1) FROM AO ASKING US TO DEDUCT TDS U/S 194c @2.266%. MMB IS REGISTERED U/S 12AA OF THE ACT. WHILE MAKING SIMILAR PAYMENT TO GUJARAT MARITIME BOARD, OUR ASSESSING OFFICER HAD RAISED AN ISSUE & INSTRUCTED US TO APPLY PROVISIONS OF S.194I. & MADE TO DEPOSIT DIFFERNCIAL AMOUNT OF TDS ALONGWITH INTEREST THEREON.AFTER SHOWING ALL THESE CORRESPONDENCE TO MMB, THEY STILL NOT ACCEPTING THE FACTUAL POSITION.WILL APPRECIATE YOUR ADVICE.

Posts / Replies

[Surender Gupta]

Here, to take a practicle view, you have to decide first that are you agreed in principal with the AO's instruction with respect to Gujarat Maritime Board. If yes, you have to convince the MMB accordingly. If not, MMB is right and you have to take the matter up in relation to GMB. In my view, MMB should agree to make payment of differential amount.