https://www.taxtmi.com/caselaws?id=761667 Delhi HC ruled that capital grant subsidy provided by NHAI to highway concessionaires under BOOT contracts does not attract TDS under Section 194C. The court held that viability gap funding constitutes financial support rather than payment for work performed. Section 194C requires payment for physical work or labor, whereas the subsidy was aid for creating public infrastructure assets. The concessionaires' primary obligation was to raise funds and implement projects, with NHAI providing financial assistance. Since the subsidy was not payment for specific work undertaken but support for asset creation, and was credited to escrow accounts rather than contractor accounts, TDS provisions were inapplicable. Decision favored the concessionaire against revenue authorities. en-us Tue, 12 Nov 2024 00:00:00 +0530 Thu, 14 Nov 2024 10:04:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761667 Delhi HC ruled that capital grant subsidy provided by NHAI to highway concessionaires under BOOT contracts does not attract TDS under Section 194C. The court held that viability gap funding constitutes financial support rather than payment for work performed. Section 194C requires payment for physical work or labor, whereas the subsidy was aid for creating public infrastructure assets. The concessionaires' primary obligation was to raise funds and implement projects, with NHAI providing financial assistance. Since the subsidy was not payment for specific work undertaken but support for asset creation, and was credited to escrow accounts rather than contractor accounts, TDS provisions were inapplicable. Decision favored the concessionaire against revenue authorities. Case-Laws Income Tax Tue, 12 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761667