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TMI Blog2014 (5) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... that:- the arrangement is not toward the provision of carriage services, as understood by the first appellate authority, but for making available cars for the assessee's personnel. At the same time, clearly, the arrangement also includes making available services of a chauffeur as well as meeting the fuel cost of transportation. The same cannot by any means be considered as toward car rental. Subject to a reasonable deduction in respect of charges in its respect, based on the materials and/or information led by the assessee, which would though stand to be considered as toward contractual services covered by section 194-C, the balance amount would fall to be governed by u/s.194-I. - Decided against the assessee. Recovery of TDS where the tax on the relevant income stands paid by the deductee. - Held that:- The TDS provisions are only a mode and manner of collecting the tax of the deductee (through the deductor), so that there could be no double payment of tax, even as in fact clarified by the Board itself per its circular - The onus to exhibit that the tax on the relevant income has been assessed or brought to tax, so that no further tax is required to be deducted/paid in its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with various parties. While the case of the assessee is that the same, being contractual, the payments there-under attract deduction of tax at source u/s.194C, i.e., qua a contract for works, that of the Revenue is that as the work is of technical nature, the same is covered u/s.194-J, i.e., the section which covers payments for professional or technical services, prescribing tax deduction at a higher rate. True, where there are two provisions, one general and the other specific, covering a particular transaction/s, it is the specific provision which would prevail and stand to be applicable in preference to the general one. So however, the ld. Authorized Representative (AR) during the course of the hearing, on the basis of the material on record, viz., the copies of the tenders floated; work orders; the agreements, terms and conditions thereof, including those specifying the nature of the work, qualification of the personnel, the maintenance schedule to be adhered to, etc. (PB-I pgs. 25-26, 29, 45, 71-76, 91, 111, 186), exhibited the contracts to be regular, maintenance contracts and no more. In fact, as also clarified before the assessing authority, the assessee has an electrical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lized, when considered from the stand point of a common, lay person. However, the technology involved or, rather, the interface therewith, as required, is fairly simple and of low calibre; the gadgets involved being of everyday use and, therefore, of common user and repair. That is, the job involves work of regular, low-technical nature, which could thus be contracted out on a pre-determined basis in-as-much the routines involved or to be followed are well established. This is precisely what stands meant by the tribunal in Tata AIG General Insurance Co. Ltd. (supra) when it emphasized on the work for which the payment is being made. In our view, therefore, the payments made have been correctly classified for the purpose of deduction of tax at source u/s.194-C, as against u/s. 194-J being insisted upon by the Revenue, even as stated by the ld. CIT(A), drawing on decisions, among others, in the case of Tata AIG General Insurance Co. Ltd. (supra) and Dy. CIT v. Parasrampuria Synthetics Ltd. [2008] 20 SOT 248) (Del). We decide accordingly, and the assessee succeeds. 4.2 The next payment under reference is toward 'vehicle hiring'. While the assessee considers the same as l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f course coupled with other facilities. The vehicle is decidedly at the disposal of the user. Stipulations as to distance and time is only toward regulating the said availability and, besides, have a direct implication on the charge/s (to be) raised as well in-as-much as payments for user beyond defined user parameters, viz. as to time (say, 8 or 12 hrs. a day, or from 9 a.m. to 6 p.m.) or mileage (as, say, 1500 kms per month), etc., would attract a higher charge. Why, even where a hire is on a regular basis, the same would assume the nature of 'rent', as clarified by the CBDT per its Circular No. 715 (supra), relied upon by the assessee, with reference to the hire of a hotel room (refer Q. No. 20 and answer thereto). A vehicle would only stand to be covered by the definition of 'plant' or 'machinery', which are both generic terms of wide amplitude, even as, admittedly, the specific definition thereof u/ss. 43, 44BB, etc. may not be applicable for the purposes of s.194-I. In our clear view, therefore, the arrangement is not toward the provision of carriage services, as understood by the first appellate authority, but for making available cars for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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