TaxTMI 
TaxTMI 
2026 (1) TMI 1260
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.... Gurgaon. During the year under consideration the Assessee Company had made payments aggregating to Rs. 2,16,44,982/- on account of Annual Maintenance Contracts ("AMC") of Computers, DG Set, Elevator, Internet Telecommunication Services etc. on which it has duly deducted TDS @ 2% u/s 194C of the Act. 3. A survey/inspection was carried out at the assessee company's premises on 29.02.2016 by the Income Tax Department. Based on the inspection findings, the Assessing Officer held that the payments made by assessee are provided by technical experts and professionals having strong technical knowledge and accordingly, the assessee Company should have deducted TDS on these payments @ 10% as per the provision u/s 194J of the Act. Subsequently, th....
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....he recipient. The ld. counsel for the assessee relied upon the decision of the Hon'ble Supreme Court in the case of Hindustan Coca Cola Beverage Pvt Ltd 293 ITR 226 [Supreme Court] for the proposition that when deductee has paid its tax, the deductor cannot be held to be in default. 7. The ld AR relied on the Circular no 715 dated 08.08.1995 issued by the CBDT which has clarified that such transactions attract TDS @ 2% under section 194C of the Act. The ld AR further relied on the following judicial precedents which held that similar transactions are within the purview of works contract and would attract 194C and not section 194J: i. CIT v. Mumbai Metropolitan Regional Development Authority [(2018) 408 ITR 111 (Bom)] ....
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....ccount of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax on income comprised therein: Explanation. For the purposes of this section, (a) "professional services" means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section; (b) "fees for technical services" shall have the same meaning as in Explanation 2 to clause ....
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....mprised therein. Explanation. -For the purposes of this section, ****** (iii) "contract" shall include sub-contract; (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) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a p....