Common Area Maintenance charges under lease treated as contractual payments, attracting TDS under section 194C, not rent.

Common area maintenance charges paid under a lease were treated as a distinct, separately identifiable liability from rent, even where both arose under one agreement and were paid to the same entity. The analysis distinguished rent for use of premises from charges for maintenance of common facilities and services, and applied the view that such payments fall within the provision governing contractual work. On that basis, CAM charges were held liable to TDS under section 194C and not part of rent for section 194I purposes; the contrary rent-based and hotel-room authorities were treated as factually distinguishable.

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Issues: Whether common area maintenance charges paid under a lease arrangement are liable for deduction of tax at source under section 194C of the Income-tax Act, 1961, or form part of rent attracting section 194I of the Act.

Analysis: The payment of CAM charges was found to be a distinct and separately identifiable liability from rent, even though both arose under a single agreement and were paid to the same entity. The Tribunal relied on the factual distinction between rent for use of premises and maintenance charges for common facilities and services, and followed the consistent view that such maintenance payments are covered by the provision governing payments for contractual work. The contrary reliance on broader rent principles and the cited hotel-room decision was treated as distinguishable on facts.

Conclusion: CAM charges are liable to TDS under section 194C and do not form part of rent for section 194I purposes; the Revenue's challenge fails.

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