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TMI Blog2017 (10) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... t Government and that the payment was made to a contractor and therefore required deduction of tax at source in view of section 194C? - Held that:- The assessee was granted a contract by IRCTC for providing catering service for which the assessee would make payment in the nature of licence fee. According to the Revenue, on such payments, the assessee had to deduct tax at source which admittedly th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. X X X X Extracts X X X X X X X X Extracts X X X X ..... nd therefore required deduction of tax at source in view of section 194C of the Act. 3. The Tribunal in the impugned judgement held that section 194J of the Act would not apply nor would section 194C apply. According to the Tribunal, section 194C of the Act would cover payment made to a contractor. In the present case, IRCTC was not a contractor. The Tribunal also held that IRCTC was a government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts to contractors. Under sub-section (1) of Section 194C, any person responsible for paying any sum to any resident for carrying out any work in pursuance of a contract between the contractor and the specified person 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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