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TMI Blog2017 (2) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is required to deduct tax at source u/s 194J of the Act from all the payments made towards various services rendered by M/s K12 Techno Services Pvt. Ltd. 2. Brief facts of the case are that the assessee is a society engaged in the business of running educational institutions in the name and style of M/s Sri Gowtham Academy of General & Technical Education. To verify the compliance of the TDS provisions of the I.T. Act by the assessee, a survey operation u/s 133A was conducted on 19.10.2011. On verification of the details furnished by the assessee, it was noticed that the assessee has made TDS u/s 194C of the Act on some payments and u/s 194J of the Act on some other payments made to M/s K12 Techno Services Pvt. Ltd. The assessee was t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught to have been deducted u/s 194J and treated the assessee as the assessee in default u/s 201(1) and also computed the interest thereon u/s 201(1A) and brought it to tax. Aggrieved, the assessee preferred an appeal before the CIT (A) who confirmed the order of the AO and the assessee is in second appeal before us. 5. The learned Counsel for the assessee, while reiterating the submissions made before the authorities below, has drawn our attention to various clauses of the composite agreement between the assessee and M/s K12 Techno Services Pvt. Ltd and also details of the services rendered along with the relevant bills and vouchers relating to the said services. The learned Counsel for the assessee submitted that the decisions relied upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TDS rates are fixed on the basis of nature of the services or contract and not on the basis of the number of recipients of the payment. When the intention of both the parties is clear that the payments shall be made for each of the service independently, then, the services are clearly ascertainable and divisible. The TDS rates for each of the services would therefore vary. The TDS made by the assessee for various services has been tabulated by the Assessing Officer and the CIT(A)'s in their orders. For the sake of convenience and ready reference, the details are reproduced hereunder:- Expenditure TDS Section Gross Rate of TDS TDS Amount Programs % Functions 194C 19,86,180.00 2% 39,723.00 Electronic Media, other publicity & Marke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the opinion that the assessee was correct in adopting different rates of TDS for different types of payments. 9. The decisions relied upon by the Ld. AO and the CIT(A) are distinguishable from the facts of the case before us. In the case of EMC Vs Income Tax Officer (Cited Supra), the issue was whether the assessee therein was a contractor u/s 194C(1) or a subcontractor u/s 194C(2) of the Act. And therefore it is not relevant to the present case. 10. In the case of Oberoi hotels India Pvt Ltd, the Hon'ble Supreme Court was dealing with the case of an assessee who was running hotels and the issue therein was the nature of services rendered for managing a modern hotel, including promotion of business, recruiting and training staf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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