TMI Blog2022 (5) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... lear from the terms of the agreement that technical persons carried out tests and Laboratory Technician will be with minimum qualification of MLT/DMLT with science graduate while paramedical worker will be with minimum qualification of SI. It is clear that aforesaid services come within Section 194J and not u/s 194C of the Act. Therefore, we do not find any ambiguity in the order passed by the learned CIT(A). In our considered opinion, learned CIT(A) has passed a detailed and reasoned order and same does not required any interference at our end. - Decided against assessee. - I.T.A. Nos. 1072 to 1074/Ahd/2017 - - - Dated:- 18-4-2022 - Mahavir Prasad , Member ( J ) And Waseem Ahmed , Member ( A ) For the Appellant : Rupesh R. Shah , A. R. For the Respondents : Purushottam Kumar , Sr. D. R. ORDER Per Mahavir Prasad , JM The captioned three appeals have been filed at the instance of the assessee against the orders of the Commissioner of Income Tax (Appeals)-8, Ahmedabad ('CIT(A)' in short) vide Appeal Nos. CIT(A)-8/423/15-16, CIT(A)-8/424/14-15 CIT(A)-8/425/15-16; respectively, all dated 22.02.2017 arising in the assessment order dated all 08.01.2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2012-13 to F.Y. 2014-15 and TDS deducted thereon is as per the table below: Sr. No. Name of Agency Amount Paid Rate at which IDS Deducted Amt. of TDS Rs. F. Y. 2012- 13 1 SCHAMKA Technology Pvt. Ltd. 28973253 2% 591290 2 Indian Red Cross Society 796670 2% 16258 3 Valsad Raktdan Kendra 7333450 2% 149663 4 Kruise Pathline Pvt. Ltd. 3783166 2% 77207 5 Heaithfore Technologies Ltd. ( Formerly known as Religare Technologies Ltd.) 14658601 2% 299156 6 Indu Health Research Foundation Trust 6753789 2% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndation Trust 18110895 2% 362218 21 Roman Development Consultants Pvt. Ltd. 1184139 2% 23682 Total 117219945 1713314 In this case, the assessee has entered into agreement with the abovementioned entities for the purpose of carrying out screening (i.e. DTT test, HPLC test etc.) of Sickle Cell Anemia in tribal district of Gujarat. It was seen that the function performed by the above entities fall under the purview of professional services/managerial and consultancy services as per section 194J of the Act and therefore liability of the deduction of tax arises @ 10% u/s. 194J instead of u/s. 194C. Section 194J contemplates as under: [Fees for professional or technical services. 194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of- (a) fees for professional services, or (b) fees for technical services[or] [( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified ' by the Board for the purposes of section 44AA or of this section; (b) fees for technical services shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (I) of section 9; [(ba) royalty shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (I) of section 9; (c) where any sum referred to in sub-section (I) is credited to any account, whether called suspense account or by any other name, in the books of account of the person liable to pay such sum, such crediting shall be deemed to be credit of such sum to the account of the payee and the provisions of this section shall apply accordingly. Section 194C contemplates as under: 194C. (1) Any person responsible for paying any sum to any resident (hereafter in this section referred to as the contractor) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the account of the contractor or at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Account Number, to the person paying or crediting such sum. (7) The person responsible for paying or crediting any sum to the person referred to in sub-section (6) shall furnish, to the prescribed income-tax authority or the person authorised by it, such particulars, in such form and within such time as may be prescribed. Explanation.-For the purposes of this section,- (i) specified person shall mean,- (a) the Central Government or any State Government; or (b) any local authority; or (c) any corporation established by or under a Central, State or Provincial Act; or (d) any company; or (e) any co-operative society; or (f) any authority, constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both; or (g) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India; or (h) any trust; or (i) any university established or incorporated by or under a Central, S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable to the society. The screening test is conducted as per the guideline of the Government of Gujarat in this regard. The tests conducted by the personnel of the agencies in the field can be performed by medically qualified personnel and their report is submitted to society after approval of local Medical Officer. On the other hand, assessee's contention is that it has availed service of labour class and these labours don't have any technical qualification. Their job is to take out and collect blood sample and in agreement at page nos. 6 7, it is mentioned. 8. After going through the aforesaid service agreement, wherein it is clearly mentioned that: i. assignee has to make required number of teams comprising of one lab tech, two para medical worker and one assistant for entry. ii. Assignee has to make micro planning for screening with help of District Nodal officer and has to work accordingly iii. Before starting the work in the district, Assignee has to do the interdepartmental meeting at district level in the chair of respective CDHO to inform about the detail of screening program. iv. Assignee has to nominate one program coordinator for this e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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