Applicability of TDS u/s 194I or 194C

[ASHISH DESAI]

WHILE MAKING PAYMENT OF WHARFRAGE CHARGES TO MAHARASHTRA MERITIME BOARD, TDS U/S 194I  @22.66% WAS DEDUCTED BY US. MMB IS NOT ACCEPTING IT & WITHOUT OBTAINING CERTIFICATE U/S 197(1) FROM AO ASKING US TO DEDUCT TDS U/S 194c @2.266%. MMB IS REGISTERED U/S 12AA OF THE ACT. WHILE MAKING SIMILAR PAYMENT TO GUJARAT MARITIME BOARD, OUR ASSESSING OFFICER HAD RAISED AN ISSUE & INSTRUCTED US TO APPLY PROVISIONS OF S.194I. & MADE TO DEPOSIT DIFFERNCIAL AMOUNT OF TDS ALONGWITH INTEREST THEREON.AFTER SHOWING ALL THESE CORRESPONDENCE TO MMB, THEY STILL NOT ACCEPTING THE FACTUAL POSITION.WILL APPRECIATE YOUR ADVICE.

AI Summary

Dispute Over Correct TDS Section for Wharfage Payments: Section 194I vs. Section 194C Without Section 197(1) Certificate A query was raised regarding the correct section for Tax Deducted at Source (TDS) on wharfage payments to the Maharashtra Maritime Board (MMB). The payer initially deducted TDS under Section 194I at 22.66%, but MMB insisted on Section 194C at 2.266%, without a certificate under Section 197(1). A similar issue arose with the Gujarat Maritime Board (GMB), where the assessing officer required compliance with Section 194I. The respondent suggested aligning with the assessing officer's directive for GMB or convincing MMB to accept the differential payment.