TaxTMI 
TaxTMI 
2012 (7) TMI 367
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....icle hire. The Assessing Officer was of the view that the payment to vehicle hire comes under section 194-I of the Act. Therefore, the assessee was liable to deduct tax @ 10%. The Assessing Officer calculated short deduction and charged interest. The details of calculation are as under :- S.No Name of the Transporter Amount TDS should be deducted TDS deducted Short deduction Interest 1. Ghamandilal Agrawal 1866628 211489 42299 169190 16919 2. Secular Bus Service 1354360 153449 30693 122756 12276 3. Sree Radha Krishna Travel & Tour 1518968 172100 37596 134504 13450 4. Surendra Singh/Hathras 920690 94831 20688 74143 7414 5. Tilak Raj Bedi 828930 85380 18784 66596 6660 6. Viveka Chandola 333725 34374 6876 27498 2750 7. Secular Travels 1851010 209719 41944 167775 16778 TOTAL 8674311 961342 198880 762462 76247 S.No. Name of the Transporter Amount TDS should be deducted TDS deducted Short deduction 1. Secular Bus Service 1005960 113975 22797 91178....
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.... Oil Corporation (Marketing Division) in ITA Nos.1829 to 1834/Del/2011 and C.O. Nos.166 to 171/Del/2011 order dated 16th November, 2011. The relevant finding of I.T.A.T. is reproduced as below :- "We have heard both the parties and gone through the facts of the case as also the aforesaid decisions. The issue before us is as to whether the assessee company was required to deduct tax at source in terms of provisions of sec.194C or u/s sec.194-I of the Act while making payments to the carrier for transportation of petroleum products in accordance with agreement, sample copy of which is placed at pg. 59 to 72 of the paper book. The relevant provisions of sec. 194C, stipulating deduction of tax at source from payments to contractors fall under Part B of the chapter-XVII of the Act. In terms of these provisions, any person responsible for paying any sum to any resident for carrying out any work including supply of labour for carrying out any work in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of cheque or draft or any other mode, whi....
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....products from one place to the other. In effect, tank truck remains in possession of the staff of the carrier. In the event tank truck is not made available on any particular day, the assessee company is free to use the services of any other tank truck and recover the difference in transportation charges from the carrier. The assessee company, in terms clause 6 of the agreement, is required to pay for the transportation work in accordance with stipulated rates on per KL per KM basis. Inter alia, it is stipulated that no idle charges would be payable. In terms of clause 8, the carrier is responsible for loading and discharge and in the event of shortage, the carrier is made responsible. After considering various clauses of the sample agreement, we are of the opinion that the said agreement is essentially for transportation of bulk petroleum products and not for hiring of tank trucks. We find that the Hon'ble Gauhati High Court in their decision dated 27.2.2009 in CR3997/1998 in the context of deduction of tax u/s 27(a) of the Assam General Sales Tax Act, 1993, after analyzing the terms of a similar agreement in the case of the assessee observed that the said agreement obliged th....
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....similar issue in respect of deduction of tax at source from payments for hiring dumpers for transporting building material concluded in their decision dated 11.01.2001 in the case of Shree Mahalaxmi Transport Co. in ITA no.1038 of 2009 in the following terms:- "5. The Commissioner (Appeals) upon appreciation of the evidence on record has found that the assessee had given sub-contracts of transportation of goods from one place to another. To prove the nature of contracts, the assessee had produced various bills issued by such; subcontractors to show that, the contracts were mainly carried out for shifting of goods from one place to another. The Commissioner (Appeals) also found that the charges were collected by subcontractors on the basis of the quantity* of goods transported and the number of trips carried out; the assessee had not acquired dumpers on rent or lease; and that the possession and control of vehicles was with the sub-contractors, who only provided services of shifting of goods from one place to another place. It was noted that evidence in support of above was submitted to the Assessing Officer during assessment proceedings. In the background of the aforesaid ....
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.... who transported the goods belonging to the assessee and its clients to various places through their vehicles. The assessee had not taken the trailers/cranes on hire or rent from the said parties. The assessee has given sub-contracts to the said parties for the transportation of goods and not for renting out of machineries and equipments. Section 194-I of the Act makes provision of deduction of tax at source where any person who is responsible for paying to a resident any income by way of rent where as section 194C of the Act makes provision for deduction of tax at source where any person is responsible for paying any sum to any resident for carrying out any work including supply of labour for carrying out any work in pursuance of a contract between the contractor and a specified person. In the facts of the present case, there is nothing to indicate that the assessee has taken trailers/cranes on rent so as to attract the provisions of section 194-I of the Act. The assessee had given sub-contracts for transportation of goods. In the circumstances, the said transactions would fall within the purview of section 194C of the Act as the assessee was responsible for paying the amount in q....