07/07/2022
When no percentage is debited or credited to help you particular party’s membership, next including fee can’t be considered when you look at the ambit off sec 194C and other TDS conditions.
There is no consistent measuring stick to quantify new wastage in virtually any procedure for design of goods. After that waste greeting by the assessee in order to goldsmith is actually an issue off providers prudence/commercial expediency and also the exact same cannot be called upon in order to question by the AO unless of course he has got facts to show that same is actually an excessive amount of.
Given that assessee provides none debited and work out fees toward P & L a great/c neither paid one amount to parties’ membership, practical question off application of sec 194C does not develop.
Because the no Independent facts might have been brought about list from the AO to support his results, due to the fact up against assessee that have brought called for indications to show one while making costs could have been individually paid down and you will TDS subtracted irrespective of where relevant, the addition can not be suffered.
S. 194-IA : TDS – Percentage out-of Refundable Shelter Deposit of the creator so you can Landowners of the advantage away from JDA – Whether Downpayment maybe not about transfer out of immovable possessions accountable so you can TDS u/s 194-IA ? [Sec 201(1)]
S. 195 : TDS – Commission to help you non-resident overseas – Department Agreement – Principal and you may representative relationships – Transformation payment having properties rendered additional India – Maybe not secured u/s 195 [Sec
Assessee Providers, a designer, registered towards the JDA jizz general strength regarding lawyer having landowners, by which the fresh new landowners agreed to transfer a fraction of house, instead of share inside the superstructure that is as created because of the designer. The new Designer in turn accessible to shell out refundable security put. Furthermore, the newest said deposit depending on terms of JDA would be retrieved through the marketing of your a portion of the customer’s created urban area.
A.O kept your refundable safety deposit was planning to possess import of immovable property because of the designer into landowners prone to TDS you/s 194-IA, and handled brand new assessee, as assessee inside the standard u/s 201(1).
There is certainly zero import regarding immovable possessions into the year below planning, because transferee wasn’t in a position to done one acts as mentioned when you look at the JDA.
The security put can not be managed because down payment because the exact same was not related to import away from immovable possessions due to the fact specified when you look at the s 194-IA.
The current presence of earnings are a good sin qua non having attracting TDS terms hence this new refundable cover put repaid don’t make-up earnings into the hand off home residents.
Assessee Business designated a best supplier, to advertise the activities and you may qualities available with brand new assessee team by getting in touch with and you can contacting enterprises located in UAE, and dating is actually strictly that of prominent and you can representative
Considering above it absolutely was stored one assessee was not liable to deduct TDS you/s 194-IA of said refundable coverage put and should not feel handled given that assessee into the default you/s 201(1) (AY. 2014-15)
New payment staying in characteristics out of conversion strategy expenses to have functions rendered exterior Asia, for this reason perhaps not shedding inside the group of income received or considered to be received from inside the India, plus earnings accruing otherwise arising otherwise deemed to help you accrue otherwise develop when you look at the Asia perhaps not drawing TDS u/s 195.
An excellent.O invoked specifications off sec 40(a)(i) and you can disallowed the new commission paid off treating just like Partnership arrangement based on the types of determination off percentage amount.
Fundamental needs so you’re able to deduct Tax on supply, is the fact that contribution needs to be chargeable under the conditions of Operate to help you brazilcupid nedir cast an obligation you/s 195(1)
Just like the relationships would be the fact out-of dominating and you will representative, the new setting regarding determination regarding fees since the concurred anywhere between two events can not be construed since a jv, to bring new payment paid off beneath the websites off Sec 195, much more in the event that qualities have been made additional Asia and you will performed not belong category of earnings received otherwise considered getting gotten for the Asia, and therefore new conditions out-of sec 40(a)(i) can not be invoked. (AY. 2013-14)