New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (9) TMI 504 - ITAT MUMBAI

2016 (9) TMI 504 - ITAT MUMBAI - TMI - TDS u/s 194C or 194J - payments made for processing charges to Adlab for supplying copies of final negative - nature of payment - Held that:- Such payments would be covered under sub-clause (e) of Explanation to Section 194C of the Act and may not be covered u/s. 194J of the Act, as no specialised job was to be done, nor any technical services have been rendered to the assessee. In the order u/s.201 of the Act, Assessing Officer had given details about vari .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

een consistently making TDS on payments for taking prints of negative, as per the provisions of Section 194C of the Act, while for original payments, it had been deducting TDS under the provisions of Section 194J of the Act and such deduction of tax had been accepted by same Assessing Officer and in assessee's own case for subsequent years in similar state of circumstances. Payments for supplying various copies of final negative has been made by assessee to Adlabs at the rate of ₹ 220/- pe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

isions of Section 194C of the Act. Consequently, CIT(A) was justified in granting relief to assessee on this account. - ITA. Nos. 2716 & 2719/Mum/2015 - Dated:- 8-8-2016 - SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER For The Appellant : Shri Randhir Gupta, D.R. For The Respondent : None ORDER PER SHAILENDRA KUMAR YADAV, J.M: Both appeals have been filed by Revenue against the orders of Commissioner of Income-Tax (Appeals)-52, Mumbai, dated 23.02.2015 for A.Y. 2005-06 on the issue of applicabilit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed by Assessing Officer that assessee had not made TDS as per the provisions of Section l94J of the Act, in respect of payments made to M/s. Adlabs Ltd., for making copies of films/prints for the films produced by assessee. Accordingly, Assessing Officer issued a show cause notice u/s.201(1)/201(1A) of the Act to the assessee, communicating the defaults noticed. The stand of assessee has been that such payments were covered u/s.194C of the Act and not u/s.194J of the Act, but the Assessing Offic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the case ex parte on the basis of submission of ld. Departmental Representative and materials available on record. 2.3 After going through the submission of ld. Departmental Representative and perused the material on record, I find that this issue of applicability of the provisions of Section 194C versus 194J of the Act with regard to payment made for processing charges to Adlab for supplying copies of final negative. So, it is necessary to analyze the provisions of Section 194C. The provisions .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arlier, deduct an amount equal to - (i) one per cent where the payment is being made or credit is being given to an individual or a Hindu undivided family; (ii) two per cent where the payment is being made or credit is being given to a person other than an individual or a Hindu undivided family, of such sum as income-tax on income comprised therein. …… Explanation. - For the purposes of this section, - (iv) "work" shall include - (a) advertising; (b) broadcasting and tele .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

responsible for paying to a resident any sum by way of- (a) fees for professional services, or (b) fees for technical services, or (c) royalty, or (d) any sum referred to in clause (va) of section 28 shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax on income comprised therein: …… .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

clause (vii) of subsection (1) of section 9; (ba)"royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 12. Explanation 2 to clause (vii) of sub-section (1) of section 9, referred to in clause (b) of Explanation to Sec. 194J, reads as under :- "Explanation 2. - For the purposes of this clause, "fees for technical services" means any consideration (including any lump sum consideration) for the rendering of any managerial, te .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

purposes of this clause, "royalty" means consideration (including any lump sum consideration but excluding any consideration which would be the income of the recipient chargeable under the head "Capital gains") for - (i) the transfer of all or any rights (including the granting of a licence) in respect of a patent, invention, model, design, secret formula or process or trade mark or similar property; (ii) the imparting of any information concerning the working of or the use .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r of all or any rights (including the granting of a licence) in respect of any copyright, literary, artistic or scientific work including films or video tapes for use in connection with television or tapes for use in connection with radio broadcasting, but not including consideration for the sale, distribution or exhibition or cinematographic films; or (vi) the rendering of any services in connection with the activities referred to in sub-clauses (i) to (iv), (iva) and (v)." 2.6 While passi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

odak India Ltd. as per the provisions of Section 194J of the Act, as the negative processing involves specific tasks of editing, enhancement of quality of film, etc. However, the contract for making multiple prints of the final negative was given to Adlabs, on which the TDS is liable to be deducted only as per the provisions of Section 194C of the Act, as work does not involve any technical or professional services, but it is restricted to making copies of the original print. 2.7 In view of abov .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version