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TMI Blog2015 (8) TMI 1352X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the same would not fall within the definition of ‘work’ under Section 194C of the Act. See Commissioner of Income-tax Versus Karnataka Power Transmission Corporation Ltd. (KTPCL) [2012 (6) TMI 204 - Karnataka High Court ] TDS u/s 194J or 194C - payments made by an assessee towards Bill Management Services - Held that:- The services rendered by the agencies engaged by the assessees at Hospet, Bellary and Raichur are not professional services, and, therefore, Section 194J is not attracted. The demand towards the alleged short deduction of tax deducted at source and interest, therefore, was improper. The contract was rightly held to be a service contract by the Tribunal and we, also, feel that it was a contract, which should be covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act ) would attract or not. 5. The other issue is if payments made by the assessee to Bellary Computers and IT Solutions, Bellary, towards Bill Management Services are 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 come within the ambit of Section 194C of the Act. 6. The Tribunal, in its detailed discussion, held that the issue regarding non-deduction/short deduction of tax deducted at source on payments made on supply part of contracts awarded for execution of Turn Key Projects, has, already, been settled by the Jurisdictional High Court in the case of Commissioner of Income-tax and others vs. Karnataka Power Transmissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of work under Section 194C of the Act. 9. Now, we shall deal with the second issue. If 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 assessees at Hospet, Bellary and Raichur are not professional services, and, therefore, Section 194J is not attracted. The demand towards the alleged short deduction of tax deducted at source and interest, therefore, was improper. The contract was rightly held to be a service contract by the Tribunal and we, also, feel that it was a contract, which should be covered under Section 194C of the Act. 10. We do not find that these appeals involve any substantial ..... X X X X Extracts X X X X X X X X Extracts X X X X
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