TaxTMI 
TaxTMI 
2012 (8) TMI 742
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....voked section 245N(b)(iii) of the Act to maintain its application. 2. The applicant submits that it is making payment of transmission, Wheeling and SLDC Charges to Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPN) and others under transmission service agreement or agreements. The services include maintenance of transmission lines which does not involve any technical qualified staff and application of mind, according to the applicant. 3. This Authority allowed the application under section 245R(2) of the Act to give a ruling on the following question: Whether TDS provisions u/s 194J or 194C of the IT Act, 1961 are applicable on Transmission, Wheeling & SLDC Charges paid by the appellant company to M/S RRVPNL & others vide demand ....
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....lso functions as State Load Dispatch Centre. The applicant, in addition, pays to RVPN charges for it, called SLDC charges. According to the applicant the transmission and wheeling are done by RRVPNL as part of its statutory functions. The charges paid cannot be seen as anything other than statutory charges. Similarly, SLDC Charges are collected in terms of the Electricity Act, 2003 and they have also to be viewed only as statutory charges. The transmission does not involve the rendering of any technical services nor are the technically qualified staff of RRVPNL involved in transmission of electrical energy. The SLDC Charges are mere statutory dues and there is no rendering of technical services involved to the applicant justifying considera....
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....thers is required for transmission and for maintaining the transmission. Therefore, the transmission and wheeling charges are found to be fees for technical services. As far as SLDC charges are concerned it is not a case of just using the system set up of RVPN. RVPN has to undertake certain activities to provide the services and to maintain the requisite quality of service. These activities require the technical support and services of technically qualified staff and therefore they are technical services within the meaning of section 194J of the Act. 7. The emphasis laid by the applicant on the statutory character of the companies and the entrustment of certain statutory obligations to them may not help in determining the nature of the p....
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....y, no rendering of technical services is involved. It is not a mere case of RVPN maintaining its system with the help of its professional and technical personnel. It is also a case of such personnel ensuring regular and consistent transmission of electrical energy at the grid voltage at the distribution point of the applicant. The fact that the contract between the parties is backed by the statutory obligation of either or both of them, cannot alter the nature of the services rendered. The argument on behalf of the applicant that in ensuring due and proper transmission of electrical energy from the generation point to the distribution point of the applicant, the services of technical personnel are not needed cannot be accepted. 10. Secti....
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....d that the transmission, and wheeling charges paid by the applicant to RVPN are in the nature of fees for technical services and the applicant is obliged to withhold tax thereon under section 194J of the Act. 13. As far as SLDC charges are concerned, it is paid to the State Load Dispatch Centre. State Load Dispatch Centers are constituted for the purpose of exercising the powers and discharging the functions under Part V of the Electricity Act. Part V of the Act deals with the Transmission of electricity. The centre is the apex body to ensure integrated operation of the power system in the state. It is responsible for optimum scheduling and dispatch of electricity within the state in accordance with the contracts entered into with licenc....