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TMI Blog2017 (10) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... rson is required at the time of credit of such sum in the account of the contractor or at the time of payment to deduct tax at specified rate. The Tribunal was thus right in observing that section 194C of the Act would apply in case of a payment being made by a contractor to a contractee and not vice-versa. In the present case, the payment of licence fee was made by the contractee to the contracto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for our consideration: Whether the assessee is liable to deduct tax at source for license fees paid to IRCTC? ' 2. The issue in the nutshell pertains to the disallowance under section 201(1) read with section 194J of the Act on the payments made by the assessee by way of license fees to Indian Railway Catering and Tourism Corporation Limited ['IRCTC' for short]. The Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot done. Section 194J of the Act raises the requirement for deduction of tax on payment of professional or technical service fee and for obvious reasons therefore this provision would have no applicability in the present case. Section 194C of the Act pertains to requirement of deduction of tax at source on payments to contractors. Under sub-section (1) of Section 194C, any person responsible for p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tering service. In that view of the matter, we see no reason to interfere. However, this may not be seen as our confirmation of the Tribunal s view that IRCTC was a government body and therefore also requirement of deducting tax at source did not arise or that proviso to sub-section (1) of Section 201 may have retrospective effect. We keep both these questions open. 3. In the result, Tax app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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