When zero commission try debited otherwise credited so you’re able to respective party’s profile, after that such as payment can’t be considered for the ambit away from sec 194C or any other TDS terms.
There isn’t any consistent measuring stick to help you quantify the new waste in any process of development of goods. Further wastage enjoy of the assessee so you’re able to goldsmith try an issue from providers wisdom/commercial expediency together with same cannot be asked to concern by the AO except if he has got facts to show that exact same was a lot of.
Once the assessee enjoys neither debited while making charges for the P & L a great/c neither paid any amount to parties’ account, the question of applying of sec 194C does not occur.
Because zero Separate evidence might have been created checklist from the AO to help with their conclusions, just like the up against assessee with introduced required evidences to show you to making costs could have been individually paid and you may TDS deducted no matter where applicable, the latest introduction can’t be sustained.
S. 194-IA : TDS – Percentage away from Refundable Shelter Put because of the developer to Landowners by the virtue out of JDA – If Advance payment perhaps not about import regarding immovable possessions liable in order to TDS you/s 194-IA ? [Sec 201(1)]
S. 195 : TDS – Percentage so you’re able to non-citizen overseas – Agencies Contract – Dominating and you will representative matchmaking – Conversion percentage having services made outside Asia – Maybe not safeguarded u/s 195 [Sec
Assessee Company, a designer, entered into the JDA jizz general strength regarding attorney which have landowners, for which the brand new landowners offered to import a portion of property, in the place of express inside the superstructure that is to-be developed of the developer. The fresh new Designer therefore wanted to shell out refundable shelter deposit. In addition, the newest said put as per terms of JDA would-be retrieved from sales of the the main user’s built urban area.
A.O stored that refundable safety put are said to have import off immovable possessions by the designer on landowners liable to TDS you/s 194-IA, and you can managed the assessee, given that assessee when you look at the standard you/s 201(1).
Discover no import regarding immovable property inside 12 months under planning, once the transferee wasn’t in a position to complete people acts as mentioned into the JDA.
The safety deposit can’t be managed as the down-payment as the same wasn’t related to import away from immovable property because enumerated from inside the s 194-IA.
The clear presence of income try a sin qua low to have attracting TDS arrangements which the fresh new refundable protection deposit paid back don’t compensate money in the hand away from land citizens.
Assessee Providers designated an only provider, to market the activities and you can properties available with the newest assessee organization from the getting in touch with and calling enterprises located in UAE, and relationship try strictly regarding prominent and representative
Predicated on a lot more than it was stored you to definitely assessee wasn’t responsible to subtract TDS you/s 194-IA of told you refundable defense deposit and cannot become managed because the assessee inside the standard you/s 201(1) (AY. 2014-15)
New commission being in nature off conversion venture cost to have features made outside India, for this reason perhaps not dropping inside sounding money gotten or deemed so you can become gotten when you look at the Asia, along with money accruing or developing or deemed in order to sdc app accrue or happen in the India maybe not drawing TDS u/s 195.
An effective.O invoked terms off sec forty(a)(i) and disallowed the new percentage paid dealing with exactly like Partnership agreement according to the sorts of devotion out of percentage amount.
Important demands in order to subtract Income tax during the supply, is that the share should be rechargeable under the provisions of your Operate to help you shed a duty u/s 195(1)
Given that relationship would be the fact from principal and you may broker, the brand new function from determination away from costs since arranged ranging from a few people can not be construed as a joint venture, to create the commission paid down beneath the net of Sec 195, much more in the event the attributes were made exterior Asia and you will performed perhaps not fall-in sounding money gotten or considered to-be obtained into the Asia, and therefore the new conditions out of sec 40(a)(i) can’t be invoked. (AY. 2013-14)
