Issue :Revenue’s contention that the Respondent Assessee, a trust, running a hospital, had to deduct the tax at source under Section 192 (salary) of the Income Tax Act, 1961 Held ;Significant features of the contractual relationship between the doctors and the hospital in the present case were that the hospital would provide support service where a… Read More »
On perusal of section 194J of the Act, we find that tax is deductible at source either at the time of credit of expenditure to the account of the payee or at the time of payment whichever is earlier. In the instant case, the assessee had made provision for audit fees to the account of… Read More »
No TDS on reimbursement of expenses if it had no income element: HC if no income is attributable to the payee, there is no liability to deduct tax at source in the hands of the tax deductor. HIGH COURT OF KARNATAKA Commissioner of Income Tax v. Kalyani Steels Ltd. MRS. S. SUJATHA AND JOHN MICHAEL CUNHA, JJ.… Read More »
Conditions to be satisfied for application of section 194J regarding TDS on Professional or Technical service
IN THE ITAT BANGALORE BENCH ‘C’ Hosmat Hospital (P.) Ltd. v. Assistant Commissioner of Income-tax, (TDS), Circle 18 (1), Bangalore VIJAY PAL RAO, JUDICIAL MEMBER AND INTURI RAMA RAO, ACCOUNTANT MEMBER IT APPEAL NOS. 572, 575, 576, 879, 880 & 881 (BANG.) OF 2014 [ASSESSMENT YEARS 2011-12 TO 2013-14] AUGUST 11, 2016 S. Annamalai, Adv.… Read More »
Held We further find that in the case of CIT v. Bharti Cellular Ltd. [2009] 319 ITR 139 , the Hon’ble Delhi High Court has held that the expression “fees for technical services” in section 194J of the Income-tax Act, 1961,has the same meaning as given to the expression in Explanation 2 to section 9(1)(vii) of… Read More »
Held Following the decision of the Hon’ble Apex Court in the case of Kotak Securities Ltd., we hold that no TDS is deductible on payment of transaction charges paid by members to Stock Exchange under section 194J of the Act, as they are not for technical services rendered but are in the nature of payments… Read More »
Issue Whether the wheeling charges paid by the Assessee amount to fees for technical services within the meaning of Section 194J of the Act. ? HELD BPTA agreement between DTL and PGCIL there is transportation of the electricity from PGCIL to DTL, through the equipment and network required statutorily to be maintained by PGCIL through… Read More »
“Trade discount scheme” would amount to Commission liable for deduction of tax at source u/s 194H of the Act. ? Held No Contractual payments made to M/s United Breweries Ltd, Bangalore and M/s Millenium Breweries Industries Ltd, Bangalore would amount to payment of Royalty liable for deduction u/s 194J of the Act, and not u/s 194C… Read More »
TDS on Internet Charges /Leased line In the following judgement it was decided that the there is no TDS on Internet Charges /Leased line Assessment year 2007-08 Facts of the Case : Assessee was engaged in business of development of computer software . Issue :- Assessing Officer disallowed a certain sum under section 40(a)(ia) on… Read More »