Clarification regarding applicability of provisions of Section 194-I to payments made by the customers on account of cooling charges to the cold storage owners
📋
Contents
Cases Cited
Referred In
Notifications
Circulars
Forms
Manuals
Acts
Rules & Regulations
Case Laws New
Ref Provisions New
Plus +
Source NTF
Summary
Similar
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
Withholding on cooling charges treated as contract payments; apply contractor withholding rules rather than rent withholding. Cooling charges paid by customers to cold storage owners are not rent because preservation by mechanical process is the primary function and customers acquire no right to use space or machinery; therefore Section 194-I does not apply, and such cooling charges should be treated as contractual service payments subject to withholding under Section 194-C.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Withholding on cooling charges treated as contract payments; apply contractor withholding rules rather than rent withholding.
Cooling charges paid by customers to cold storage owners are not rent because preservation by mechanical process is the primary function and customers acquire no right to use space or machinery; therefore Section 194-I does not apply, and such cooling charges should be treated as contractual service payments subject to withholding under Section 194-C.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.