Broadcasting and telecasting payments for channel placement fall under section 194C, not section 194J, for tax deduction purposes.

Placement fees paid to cable operators and multi system operators for positioning television channels in the prime band were treated as payments for broadcasting and telecasting work. Because clause (iv) of the Explanation to section 194C specifically includes broadcasting and telecasting within "work", the specific provision applied rather than the general provision for technical services under section 194J. The payment was therefore covered by section 194C and not section 194J, and the assessee's position was accepted.

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Issues: Whether placement fees paid to cable operators and multi system operators for placing television channels in the prime band were liable for tax deduction at source under section 194C or under section 194J of the Income-tax Act, 1961.

Analysis: The payment was made for carrying out broadcasting and telecasting work by placing the channels for wider viewership. Clause (iv) of the Explanation to section 194C specifically includes broadcasting and telecasting, including production of programmes for such broadcasting or telecasting, within the meaning of "work". The Tribunal relied on judicial precedent holding that where a provision specifically covers broadcasting and telecasting, the specific provision must be applied instead of the more general provision for technical services. The Board circular also clarified that a payment is liable for deduction only under one applicable section of Chapter XVII-B.

Conclusion: The payment was covered by section 194C and not by section 194J. The Revenue's challenge failed, and the assessee's view was accepted.

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