Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: due date for vat payment :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: empanelment :: VAT Audit :: VAT RATES :: cpt :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: form 3cd
 
 
« ITAT-Constitution of Benches »
 Income Tax Appellate Tribunal Pune Constitution of Benches from 27/06/2017 To 30/06/2017
 Income Tax Appellate Tribunal New Delhi Constitution of Benches from 27/06/2017 To 30/06/2017
 Income Tax Appllate Tribunal Pune Banches Pune, Causelist for Bench 'A' for the week Ending 23/06/2017
 Income Tax Appllate Tribunal Mumbai Consolidated list of orders ready for Pronouncement on 21/06/2017
 Income Tax Appellate Tribunal Chennai Benches Chennai Constitution for the week from 12/06/2017 To 15/06/2017
 Income Tax Appellate Tribunal New Delhi Constitution of Benches from 12/06/2017 To 16/06/2017
 Income Tax Appellate Tribunal Revised Constitution of Pune Benches for the Period from 19/06/2017 To 23/06/2017
 Income Tax Appellate Tribunal Revised Constitution of Mumbai Benches for the Period from 19/06/2017 To 23/06/2017
 Income Tax Appellate Tribinal : Bangalore Benches : Bangalore Constitution for the week from 19/06/2017 To 22/06/2017
 Income Tax Appellate Tribunal, New Delhi Benches, New Delhi Constitution For The Period From 12-06-2017 To 16-06-2017
  Income Tax Appellate Tribunal, Ahmedabad Benches, Ahmedabad Constitution For The Period From 12-06-2017 To 15-06-2017

Chattisgarh State Electricity Board vs. ITO (ITAT Mumbai)
December, 23rd 2011

S. 194-I TDS: To be Rent, payee must have control over asset
 
The assessee, a SEB, entered into an agreement with NTPC for purchase of power and another with Power Grid Corporation for transmission of the power from NTPCs bus bars to the delivery point. The AO & CIT (A) took the view that the transmission charges paid by the assessee to Power Grid was rent for use of plant and tax ought to have been deducted u/s 194-I. The argument that as the payee had been assessed, no recovery could be made from the payer was also rejected. The assessee was held liable for failure to deduct TDS. On appeal by the assessee, HELD allowing the appeal:
 
(i) S. 194-I defines rent to include any payment, by whatever name called, under any lease, agreement or arrangement for the use of any machinery or plant. For a payment to be construed as rent, it is a condition precedent that the payer should have some control over the asset. There is a distinction between the use of an asset and the benefit derived from an asset. In a transaction of hire/ leasing, the possession of the goods and its effective control is given to the customer and the customer has the freedom and choice of how to use the asset. On the other hand, if the customer entrusts to the assessee the work of achieving a certain desired result and that involves the use of goods belonging to the owner, the control of the asset remains with the owner and there is no use by the customer (Asia Satellite 332 ITR 340 (Del) followed, Japan Airlines 325 ITR 298 (Del) & Krishna Oberoi 257 ITR 105 (AP) distinguished;
 
(ii) On facts, the transmission lines were under the possession & control of Power Grid. The assessee was merely enabled to use the services of transmission of electricity and not the use of transmission wires per se. The assessee was not involved in the in the actual operations of the transmission lines. The transmission wires were also used by other customers of Power Grid. Consequently, the payments were not rent u/s 194-I;
 
(iii) Under the Explanation to s. 191, a person can be treated as an assessee in default u/s 201(1) only when, apart from the lapse in deduction of tax at source, the recipient of income has failed to pay such tax directly. S. 201(1) imposes vicarious (and not penal) liability on the payer to make good the shortfall in tax collection. If the tax liability is discharged by the recipient of income, the vicarious liability cannot be invoked.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions