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TAX DEDUCTED AT SOURCE

TAX DEDUCTED AT SOURCE CONTRACTS • • • • WRITTEN OR ORAL SIGNIFY INTENTION OF THE PARTIES DEFINE SCOPE OF WORK NATURE OF TAXES .

no inference should be drawn so as to construe it in a different way. the intention of the parties is to be gathered from the document itself and unless it is proved that the document is a camouflage.CONTRACTS …. 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. the words used in the document have to prevail.. .

Since the broad objective was to share the profit and not to hire premises.CONTRACTS CIT Vs. the assessee is not liable to TDS u/s 194I . it was a composite contract for providing training. 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..

Utility Powertech Ltd. – Assessee gives contract to one of the partners in the JV Deducts 1% TDS on payments made .CONTRACTS ACIT Vs.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 .

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.. 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. .CONTRACTS East India Hotels Ltd vs. CBDT ….

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 . Glenmark Pharmaceuticals Ltd.CONTRACTS CIT – TDS Vs. .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. ….

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 Hindustan Lever Ltd vs. CIT …….

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

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 .