TMI Blog2019 (6) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... nor for technical services. Having perused the documents on record and looking to the nature of services described, we do not find that the Tribunal has committed any error. The work outsourced was in the nature of clerical work. No question of law arises. TDS u/s 194C or 194J - Short deduction of tds - charges of the event management expenses paid by the assessee - HELD THAT:- CIT (Appeals) and the Tribunal noted that the assessee had arranged conference at Agra. The payments were essentially for domestic ticketing, reimbursing hotel expenses, tour leaders expenses. Such services were essentially in the nature of travel agent who had arranged the ticket booking and hotel facilities. The Tribunal therefore held that payments were not fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Respondent. P.C.:- 1. These three appeals filed by the revenue arise out of the common judgment of Income Tax Appellate Tribunal. For convenience, we may record facts from Income Tax Appeal No.604 of 2017. Revenue has presented following questions for our consideration:- (a) Whether on the facts and in the circumstances of the case and in law, the ITAT was justified in holding that tax was deductible from payment of outsourcing expenses such as processing charges, call centre operations and business services etc. under section 194C instead of section 194J of the Act without appreciating that the nature of services received by the assessee requires certain parameters of technical/managerial skill of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luding the service tax component? 2. Question Nos.a to c relate to the requirement of deduction of tax at source by the respondent whether the same was correctly deducted. Each question relates to a different payment and we shall therefore examine each question separately. 3. Respondent assessee is an Insurance Company. Question Nos.a and b pertain to a deduction of tax at source on the payment of outsourcing expenses. The assessee had deducted tax under Section 194C of the Act. The revenue argues that the same ought to have been under Section 194J of the Act since payments were for managerial and technical services. 4. The CIT (Appeals) and the Tribunal examined the nature of expenditure and came to the conclus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company would make net payment of charges to the agent and directly deposit the service tax component with the Government. The assessee deducted the tax at source on the agent s commission excluding service tax component. The revenue objects to this methodology arguing that even the service tax component ought to have been part of the amount on which TDS was required to be deducted. The Tribunal however referred to the CBDT circular essentially providing that the deduction of tax at source has to be made in relation to the income of the payee. The service tax component not being the part of the income, liability of deducting tax on this component therefore does not arise. Special reference was made to the case of the landlord and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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