TaxTMI 
TaxTMI 
2007 (11) TMI 436
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.... provisions of section 194J of the Act as against provisions of section 194C applied by the assessee and deducted tax under section 194C. 2. The Assessing Officer held that the amount paid by the assessee in respect of maintenance support agreement, fabrication of chilled water line, work order for thermal insulation/erection, conversion of partially oriented yarn (POY) into polyester textured yarn and twisted yarn amounts to payment of 'fees for technical services' and not merely payment to a contractor. Thus, the Assessing Officer held that for all these payments made the assessee should have deducted tax at source under section 194J and not under section 194C. Thus, for the differential amount the assessee was treated as assessee in def....
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....se (vii) of sub-section (1) of section 9, extracted herein: "For the purposes of this clause, 'fees for technical services' means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient chargeable under the head 'salaries'." Hon'ble Madras High Court in the case of Skycell Communications Ltd. (supra) observed thus: "In the modern day world almost every facet of one's life is linked to science and technology inasmuch as numerous things used or relied upon in every day life is the res....
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....amounting to provision of technical services to the consumer resulting in the consumer having to deduct tax at source on the payment made for power consumed and remit the same to the revenue. Installation and operation of sophisticated equipments with a view to earn income by allowing customers to avail of the benefit of the user of such equipment does not result in the provision of technical service to the customer for a fee. When a person decides to subscribe to a cellular telephone service in order to have the facility of being able to communicate with others he does not contract to receive a technical service. What he does agree to is to pay for the use of the airtime for which he pays a charge. The fact that the telephone service pro....