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TMI Blog2015 (9) TMI 1489X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice to deduct tax at source. The whole object of introduction of that section was to deduct tax in respect of payments made for works contracts. No division was, therefore, permissible in respect of a contract for supply of materials for carrying out the work as in case of distinct contracts. The contract for supply of material being a separate and distinct contract, no division was permissible under section 194C of the Act. Section 194C was amended with effect from October 1, 2009 and the provision is unambiguous. Therefore, it was concluded by this court that if a person executing the work, purchases the materials from a person other than the customer, the same would not fall within the definition of "work" under section 194C of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax and the appeals had been partly allowed and the Revenue had taken up the matter before the Income-tax Appellate Tribunal, which was futile. 4. The first issue involved in those appeals was if on the payment made against the supply of materials included in composite contracts for executing Turnkey Projects, provisions under section 194C of the Income-tax Act, 1961 (for short, the Act ) would attract or not. 5. The second issue was if payments made by the assessee to Bellary Computers and IT Solutions, Bellary, towards Bill Management Services were fees for professional and technical services and, therefore, comes within the purview of section 194J of the Act or payments made towards carrying out work comes within the ambit of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t from October 1, 2009 and the provision is unambiguous. Therefore, it was concluded by this court that if a person executing the work, purchases the materials from a person other than the customer, the same would not fall within the definition of work under section 194C of the Act. 7. In so far as the second issue was concerned, this court has opined that the provisions of section 194J or section 194C would apply in respect of payments made by an assessee towards bill management services. The services rendered by the agencies engaged by the assessee at several places are not professional services, and, therefore, section 194J was not attracted. The demand towards the alleged short deduction of tax deducted at source and interest, was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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