2019 (5) TMI 555

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....; were not credited to the account of any of the payee but credited to 'Provision for Expenses' and therefore TDS provisions were not applicable without appreciating the provisions of Explanation (c) to subsection (1) of Section 194J and Explanation (iv) to Section 194H ?"   2. To be heard with Income Tax Appeal No.1390 of 2013. 3. We notice that the revenue has suggested two more questions which read as under: "a. Whether on the facts and in the circumstances of the case and in law, the ITAT is correct in holding that the pay channel subscription fees paid to cable operators/MSO/DTH Operators are payments for work contract covered u/s 194C and not fees for technical services u/s 194J, without appreciating that the services....

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....rk' shall include, inter alia, broadcasting and telecasting including production of programmes for such broadcasting and telecasting. By way of such Explanation, it is evident that where the payment is for a work involving broadcasting and telecasting, the same shall be subject to deduction of tax at source in terms of Section 194 of the Act. The assessee is a cable network operator through which it provides telecasting of programmes to the ultimate consumers/subscribers. The assessee in turn enters into a contract with the licensor of various TV channels. On the payment so made, Section 194C of the Act is attracted. This is for the reason that the licensor, is a person who is performing the work which is covered within the meaning of C....

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.... broadcasting and telecasting and is therefore outside the purview of Section 194C of the Act. This argument deserves to be negated at the threshold. As we have pointed out earlier what the assessee subscriber is looking for is to obtain the telecast signals from the licensor, which is enough to deduce that the impugned contract involves broadcasting and telecasting of TV signals. Moreover, the licensor or the company, as is evident from the specimen agreement on record, in the business of distribution of satellite based TV channels and has exclusive rights to market and distribute said services in India, the service that is referred to in the agreement is the broadcasting and telecasting of TV signals. 17. For the reasons recorded above,....