TaxTMI 
TaxTMI 
TaxTMI 
2016 (9) TMI 504
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....egative. 2.1 Assessee is a Private Limited Company and is engaged in the business of film production and distribution. A survey action u/s.133A of the Act was conducted at the premises of the assessee company for ascertaining whether the assessee was complying with the provisions of Chapter XVII-B of the Act. It was noticed by Assessing Officer that assessee had not made TDS as per the provisions of Section l94J of the Act, in respect of payments made to M/s. Adlabs Ltd., for making copies of films/prints for the films produced by assessee. Accordingly, Assessing Officer issued a show cause notice u/s.201(1)/201(1A) of the Act to the assessee, communicating the defaults noticed. The stand of assessee has been that such payments were covere....
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....r by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to - (i) one per cent where the payment is being made or credit is being given to an individual or a Hindu undivided family; (ii) two per cent where the payment is being made or credit is being given to a person other than an individual or a Hindu undivided family, of such sum as income-tax on income comprised therein. ...... Explanation. - For the purposes of this section, - (iv) "work" shall include - (a) advertising; (b) broadcasting and telecasting including production of programmes for such broadcasting or telecasting; (c) carriage of goods or passengers by any mode of transport other than by railways; (d) catering; (e) manufac....
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....referred to in clause (b) of Explanation to Sec. 194J, reads as under :- "Explanation 2. - 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 or consideration which would be income of the recipient chargeable under the head "Salaries"." 2.5 Explanation 2 to clause (vi) of sub-section (1) of section 9, referred to in clause (ba) of Explanation to Sec. 194J, reads as under :- "Explanation 2. - For the purposes o....
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....Act, Assessing Officer held that TDS in respect of payments made by the assessee for obtaining copies of film prints should have been made as per the provisions of Sec. 194J of the Act, and not u/ s. 194C of the Act, as was done by assessee, and, accordingly, he worked out the shortfall in TDS at Rs. 37,95,763/-. During course of appellate proceedings, the stand of assessee has been that assesse company had deducted TDS on the negative processing charges paid to Kodak India Ltd. as per the provisions of Section 194J of the Act, as the negative processing involves specific tasks of editing, enhancement of quality of film, etc. However, the contract for making multiple prints of the final negative was given to Adlabs, on which the TDS is liab....