Anda di halaman 1dari 11

TAX DEDUCTED AT SOURCE

TAX DEDUCTED AT SOURCE


CONTRACTS

WRITTEN OR ORAL SIGNIFY INTENTION OF THE PARTIES DEFINE SCOPE OF WORK NATURE OF TAXES

CONTRACTS
.. the intention of the parties is to be gathered from the document itself and unless it is proved that the document is a camouflage, the words used in the document have to prevail. Referring to the judgment, he further contended that that where the parties were capable of understanding their rights fully and expressly agreed that the document should be construed in one way, no inference should be drawn so as to construe it in a different way.

CONTRACTS
CIT Vs. NIIT
..the dominant intention of the parties of the agreement is to do business and not to let out the building and furniture and the sum shared between them is not fixed nor any minimum amount is guaranteed by the assessee and above all, it was a composite contract for providing training. Since the broad objective was to share the profit and not to hire premises, the assessee is not liable to TDS u/s 194I

CONTRACTS
ACIT Vs. Utility Powertech Ltd. Assessee gives contract to one of the partners in the JV Deducts 1% TDS on payments made - AO is for treating the same as professional and technical service - Held that the recipient has declared the entire payments received and also paid tax and no tax can be demanded from the person responsible for deducting tax for the same income

CONTRACTS
East India Hotels Ltd vs. CBDT .. the argument of the revenue that the service contracts between the petitioner hotel and its customers is covered under section 194C of the Act cannot be accepted because, neither such a contract constitutes work within the meaning of section 194C of the Act nor those contracts are covered under service contracts specifically included by way of Explanation III to section 194C of the Act.

CONTRACTS
CIT TDS Vs. Glenmark Pharmaceuticals Ltd. . the contract with the third parties is contract of 'Work' and assessee should have deducted TDS u/s 194C on the payment made to them - CIT(A) goes with the AO - Tribunal took the view that the contract with third parties is a contract for sale and not for work and hence provisions of TDS are not applicable.

CONTRACTS
Hindustan Lever Ltd vs. CIT . the issue of Circular dated 29-5-72 had consistently taken the position that furnishing of specification to the manufacturer by the purchaser would not detract from a contract being regarded as a contract for sale so long as the property in the goods was passed upon delivery.

CONTRACTS
AAR No. 834 of 2009 ABB LIMITED . proposed to enter into cost contribution agreement with ABB Zurich undertaking basic R&D activities - also pays 'Coordination fee' for coordinating the research efforts with the research centres and all the participating group entities

CONTRACTS
Should contain clauses

On who bears the taxes Direct and Indirect Withholding tax obligations Changes in rates New Levies Reimbursement of expenses

THANK YOU