TMI Blog2017 (2) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... services are discernible and different. If the contention of the Revenue was to be accepted, then why should the TDS be deducted u/s 194J and not u/s 194C for all the payments treating the entire agreement as a work contract?. When the basket of services is filled with different and distinguishable services, we are of the opinion that the assessee was correct in adopting different rates of TDS for different types of payments. Even the CBDT circular relied upon by the Ld. DR provided that the all the payments cannot be covered under one section. Therefore, in our opinion, the Assessing Officer and CIT(A) have erred heard in holding that the assessee ought to have made TDS u/s 19J of the Act on the entire payment to M/s K12 Techno Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same. 3. On perusal of the details, the A.O observed that the assessee entered into an agreement with M/s K12 Techno Services Pvt. Ltd, West Marredapally, Secunderabad, for availing various services from it for running of the educational institutions. On close examination of the services rendered by M/s K12 Techno Services Pvt. Ltd to the assessee, the AO observed that they include both works contracts as well as professional and technical services and the assessee has affected the TDS by treating its services partly as professional u/s 194J and partly as works contracts u/s 194C of the Act. The AO observed that the entire services are rendered by one single entity i.e M/s K12 Techno Services Pvt. Ltd, and therefore, by virtue of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in holding that TDS for all the services ought to have been made @ 10% as prescribed u/s 194J of the Act. 6. The learned DR, on the other hand, supported the orders of the authorities below and submitted that the agreement was a composite agreement and therefore, the TDS provisions u/s 194J ought to have been applied on the aggregate of the amount paid by the assessee. 7. Having regard to the rival contentions and the material on record, we find that M/s K12 Techno Services Pvt. Ltd, has rendered various services to the assessee for the efficient and effective running of the educational institution. The copy of the master services agreement is placed at page No. 1 to 42 of the paper book and the copy of the supplement agreement dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lectronic Media, other publicity Marketing services 194C 3,42,01,453.00 2% 6,84,029.00 Print Media 194C 83,58,616,.00 2% 1,67,172.32 General Maintenance services 194C 2,45,13,898.00 2% 4,90,277.96 Provision of Education services AV lab, computer lab, Multimedia 194C 4,09,46,320.00 2% 8,18,926.40 Expenditure TDS Section Gross Rate of TDS TDS Amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of all the payments is a single party, the nature of the services are discernible and different. If the contention of the Revenue was to be accepted, then why should the TDS be deducted u/s 194J and not u/s 194C for all the payments treating the entire agreement as a work contract?. When the basket of services is filled with different and distinguishable services, we 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 subcontr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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