When no fee is debited otherwise credited to respective party’s accounts, then including fee can’t be noticed within the ambit out of sec 194C or other TDS conditions.
There isn’t any consistent measuring stick to quantify the brand new waste in just about any procedure for design of products. Then wastage enjoy from the assessee so you can goldsmith is an issue away from team prudence/industrial expediency in addition to same can not be asked so you can question by the AO unless of course he has got facts to show your exact same is actually extreme.
Just like the assessee have neither debited to make charge into P & L a beneficial/c neither paid people add up to parties’ account, the question off applying of sec 194C will not happen.
Since the zero Separate proof has been created list from the AO to support his results, once the facing assessee which have put required indications to prove you to and make costs might have been by themselves paid down and you may TDS subtracted wherever relevant, the fresh introduction can not be sustained.
S. 194-IA : TDS – Payment of Refundable Safeguards Deposit from the creator so you can Landowners by virtue off JDA – Whether or not Advance payment perhaps not pertaining to import of immovable property liable in order to TDS u/s 194-IA ? [Sec 201(1)]
S. 195 : TDS – Percentage in order to low-resident overseas – Agencies Contract – Dominant and you will representative dating – Sales percentage to possess features rendered additional Asia – Perhaps not protected u/s 195 [Sec
Assessee Business, a designer, inserted to your JDA sperm general stamina from attorneys having landowners, whereby the newest landowners offered to transfer a fraction of house, in lieu of show into the superstructure that is to-be created of the creator. The fresh Designer in turn accessible to pay refundable safeguards deposit. Additionally, this new told you deposit depending on terms of JDA could be retrieved through the profit of the main owner’s developed area.
A.O held your refundable safety put is attention to possess import regarding immovable possessions by the designer toward landowners liable to TDS you/s 194-IA, and you can handled brand new assessee, while the assessee for the standard u/s 201(1).
There is certainly no import out of immovable assets in seasons less than consideration, just like the transferee was not able to complete one will act as mentioned from inside the JDA.
The safety deposit can’t be handled once the down payment due to the fact exact same was not related to transfer out of immovable property because specified in s 194-IA.
The existence of earnings is actually an effective sin qua non to possess attracting TDS upforit profile provisions and therefore the latest refundable shelter deposit paid didn’t compensate earnings for the hand regarding home owners.
Assessee Providers appointed an only service provider, to market those activities and you may features available with brand new assessee organization of the getting in touch with and you can contacting companies situated in UAE, and you may dating try strictly that dominating and you may representative
Predicated on significantly more than it was stored one to assessee wasn’t accountable in order to deduct TDS u/s 194-IA out of told you refundable security put and cannot be treated given that assessee in standard u/s 201(1) (AY. 2014-15)
The brand new payment in nature off transformation promotion costs having services rendered outside India, thus perhaps not losing into the group of money received or considered in order to become obtained from inside the Asia, also earnings accruing otherwise occurring otherwise considered so you can accrue otherwise develop in India maybe not attracting TDS you/s 195.
A beneficial.O invoked terms out-of sec forty(a)(i) and you may disallowed brand new fee paid dealing with like Joint venture contract according to research by the kind of devotion from payment count.
Important criteria in order to subtract Income tax during the supply, is the fact that share should be chargeable according to the specifications of the Operate so you’re able to cast an obligation you/s 195(1)
As relationships would be the fact off dominating and you can representative, this new form out-of dedication from charges given that agreed anywhere between two people cannot be construed due to the fact a jv, to carry brand new commission reduced under the web regarding Sec 195, way more if the features was in fact rendered outside India and you will performed maybe not fall in category of income received otherwise considered to-be gotten from inside the India, and therefore the fresh new specifications off sec forty(a)(i) cannot be invoked. (AY. 2013-14)