TMI Blog2012 (8) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transmission lines which does not involve any technical qualified staff and application of mind, according to the applicant. 3. This Authority allowed the application under section 245R(2) of the Act to give a ruling on the following question: Whether TDS provisions u/s 194J or 194C of the IT Act, 1961 are applicable on Transmission, Wheeling SLDC Charges paid by the appellant company to M/S RRVPNL others vide demand of interest u/s 201(1) and 201 (IA) of the Act, by the Ld. AO and upheld by the Ld. Commissioner (Appeals) vide the above mentioned order is justified? Considering the jurisdiction of this Authority under the Act, its place in the scheme of things and taking note of the pendency of regular proceedings under the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, SLDC Charges are collected in terms of the Electricity Act, 2003 and they have also to be viewed only as statutory charges. The transmission does not involve the rendering of any technical services nor are the technically qualified staff of RRVPNL involved in transmission of electrical energy. The SLDC Charges are mere statutory dues and there is no rendering of technical services involved to the applicant justifying consideration of the payment made by the applicant therefor, as fees for technical services. In any event, the payments of transmission wheeling and SLDC Charges are in the nature of reimbursement of actual cost and hence do not generate any income in the hands of RRVPNL warranting the withholding of tax under the Act. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he services and to maintain the requisite quality of service. These activities require the technical support and services of technically qualified staff and therefore they are technical services within the meaning of section 194J of the Act. 7. The emphasis laid by the applicant on the statutory character of the companies and the entrustment of certain statutory obligations to them may not help in determining the nature of the payment made by the applicant. It is the duty of the transmission company to maintain the transmission system permit open access to its system for use by authorized persons under the Act and to ensure that the transmission system is maintained and the activity of transmission duly performed. That includes constant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the applicant. The fact that the contract between the parties is backed by the statutory obligation of either or both of them, cannot alter the nature of the services rendered. The 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. 10. Section 194J of the Act has only indicated that for the purpose of that section, fees for technical services would be as defined in section 9(1)(vii) of the Act. On considering that definition and what is involved in the proper transmission of the electrical energy as involved in this case. I am satisfied that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Load Dispatch Centers are constituted for the purpose of exercising the powers and discharging the functions under Part V of the Electricity Act. Part V of the Act deals with the Transmission of electricity. The centre is the apex body to ensure integrated operation of the power system in the state. It is responsible for optimum scheduling and dispatch of electricity within the state in accordance with the contracts entered into with licencees 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. It is entitled to collect a fee from the generating company and the licencee engaged in tran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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