tds manish somani

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Some issues on Practice of TDS LawSome issues on Practice of TDS Law

ByBy

CA MANISH SOMANI CA MANISH SOMANI

Baheti & SomaniBaheti & Somani

Chartered AccountantsChartered Accountants

www.bandsindia.com

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Chapter XVIIChapter XVIICollection & Recovery of TaxesCollection & Recovery of Taxes

A. Chapter XVII contains Machinery provisions in the aid of the substantive A. Chapter XVII contains Machinery provisions in the aid of the substantive provisions of sections 4, 5, 28, 145 laying down the charge of income tax. provisions of sections 4, 5, 28, 145 laying down the charge of income tax.

B. 4(1) Income Tax shall be charged in respect of the total income of the B. 4(1) Income Tax shall be charged in respect of the total income of the previous year.previous year.

4(2) In respect of Income chargeable u/s 4(1), income tax shall be 4(2) In respect of Income chargeable u/s 4(1), income tax shall be deducted at source.deducted at source.

C.C. Credit for tax deducted u/s 199Credit for tax deducted u/s 199 TDS shall be treated as payment of tax on behalf of the person from TDS shall be treated as payment of tax on behalf of the person from

whose income the deduction was made/owner of whose income the deduction was made/owner of security/depositor/property/unit holder/shareholder.security/depositor/property/unit holder/shareholder.

D. Credit shall be given to him for the Assessment Year for which such D. Credit shall be given to him for the Assessment Year for which such income is assessable income is assessable

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E. Section 191 - Where no provision for TDS or where TDS has not been E. Section 191 - Where no provision for TDS or where TDS has not been deducted. Obligation to pay directly by the assessee.deducted. Obligation to pay directly by the assessee.

Section 205 - Where TDS applicable and deducted then assessee can not be Section 205 - Where TDS applicable and deducted then assessee can not be called upon to pay tax himself to the extent to which tax has been deducted from called upon to pay tax himself to the extent to which tax has been deducted from that income.that income.

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Section 192 - SalarySection 192 - Salary

TDS – Provision in BriefTDS – Provision in Brief

(a)(a) Any person responsible for paying SALARIES is required to deduct tax at Any person responsible for paying SALARIES is required to deduct tax at source on the amount payable to employees. Tax is required to be source on the amount payable to employees. Tax is required to be deducted at the time of actual payment of salary.deducted at the time of actual payment of salary.

(b)(b) Where an employee is in employment of more than one employer, tax will be Where an employee is in employment of more than one employer, tax will be deducted at source by the employer, which the employee chooses or the deducted at source by the employer, which the employee chooses or the present employer.present employer.

(c)(c) The employee may furnish to the employer details of income chargeable to The employee may furnish to the employer details of income chargeable to tax under other heads of income (not being loss except loss under the head tax under other heads of income (not being loss except loss under the head Income from House Property and tax deducted on the same). In such a Income from House Property and tax deducted on the same). In such a case employer shall deduct tax due on total income. However, total amount case employer shall deduct tax due on total income. However, total amount of tax deducted should not be less than the amount of tax deductible from of tax deducted should not be less than the amount of tax deductible from salary except where the loss under the head Income from House Property salary except where the loss under the head Income from House Property has been taken into account.has been taken into account.

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Section 193 – Interest on SecuritiesSection 193 – Interest on Securities

(a)(a) Any person responsible for paying an interest on securities to a resident is Any person responsible for paying an interest on securities to a resident is required to deduct tax at source at the rates in force on amount of interest required to deduct tax at source at the rates in force on amount of interest payable.payable.

(b)(b) The Tax is required to be deducted at the time of credit of such income to the The Tax is required to be deducted at the time of credit of such income to the payees account or at the time of payment of interest on securities whichever payees account or at the time of payment of interest on securities whichever is earlier.is earlier.

Section 194 – DividendsSection 194 – Dividends

(a)(a) The Principal Officer of the Indian Company or a company, which has made The Principal Officer of the Indian Company or a company, which has made prescribed arrangements for declaration and payment of dividend in India is prescribed arrangements for declaration and payment of dividend in India is responsible for deducting tax at source from dividend payable to a responsible for deducting tax at source from dividend payable to a shareholder, who is resident in India.shareholder, who is resident in India.

(b)(b) No tax is to be deducted at source u/s 194 from Dividend payable to any No tax is to be deducted at source u/s 194 from Dividend payable to any individual shareholder if the dividend is paid by the company by an account individual shareholder if the dividend is paid by the company by an account payee cheque and the aggregate amount of dividend distributed/paid or payee cheque and the aggregate amount of dividend distributed/paid or likely to be distributed/paid during the financial year does not exceed likely to be distributed/paid during the financial year does not exceed Rs.2,500/-Rs.2,500/-

Section 194 – DividendsSection 194 – Dividends


(b)(b) No tax is to be deducted at source u/s 194 from Dividend payable to any No tax is to be deducted at source u/s 194 from Dividend payable to any individual shareholder if the dividend is paid by the company by an account individual shareholder if the dividend is paid by the company by an account payee cheque and the aggregate amount of dividend distributed/paid or payee cheque and the aggregate amount of dividend distributed/paid or likely to be distributed/paid during the financial year does not exceed likely to be distributed/paid during the financial year does not exceed Rs.2,500/-Rs.2,500/-


(b) No tax is to be deducted at source u/s 194 from Dividend payable to any (b) No tax is to be deducted at source u/s 194 from Dividend payable to any individual shareholder if the dividend is paid by the company by an account individual shareholder if the dividend is paid by the company by an account payee cheque and the aggregate amount of dividend distributed/paid or payee cheque and the aggregate amount of dividend distributed/paid or likely to be distributed/paid during the financial year does not exceed likely to be distributed/paid during the financial year does not exceed Rs.2,500/-Rs.2,500/-

(c) Dividend paid by domestic companies u/s 115O are exempt from tax in the (c) Dividend paid by domestic companies u/s 115O are exempt from tax in the hands of the recipients’ w.e.f. April 1, 2003.hands of the recipients’ w.e.f. April 1, 2003.

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Section 194A – Interest other than “Interest on Securities”Section 194A – Interest other than “Interest on Securities”

(a) Any person (except on individual or a HUF) responsible for paying interest (a) Any person (except on individual or a HUF) responsible for paying interest other than interest on securities to a resident is required to deduct tax at other than interest on securities to a resident is required to deduct tax at sourcesource

(b) However, w.e.f. 1(b) However, w.e.f. 1stst June, 2002, an Indian or a HUF whose total sales, gross June, 2002, an Indian or a HUF whose total sales, gross receipts or turnover from business or profession exceeds Rs. 40 lakhs or receipts or turnover from business or profession exceeds Rs. 40 lakhs or Rs.10 lakhs respectively, during the financial year immediately preceding the Rs.10 lakhs respectively, during the financial year immediately preceding the financial year in which such interest is credited or paid shall be liable to financial year in which such interest is credited or paid shall be liable to deduct tax at sourcededuct tax at source

(c) TDS is required to be deducted either at the time of credit of such income to (c) TDS is required to be deducted either at the time of credit of such income to the payees account or at the time of payment, whichever is earlier.the payees account or at the time of payment, whichever is earlier.

(d) No tax is deducted in case where the aggregate amount of interest does not (d) No tax is deducted in case where the aggregate amount of interest does not exceed Rs.5,000/-. In case of term deposits with banks or Cooperative exceed Rs.5,000/-. In case of term deposits with banks or Cooperative Society and Housing Finance Companies, no tax is required to be deducted Society and Housing Finance Companies, no tax is required to be deducted upto an aggregate interest of Rs.10,000/-.upto an aggregate interest of Rs.10,000/-.

(e) No tax is required to be deducted in case of interest paid/credited to any (e) No tax is required to be deducted in case of interest paid/credited to any banking company/financial corporation, LIC, UTI, etc.banking company/financial corporation, LIC, UTI, etc.

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Section 194B – Winning from Lottery or Crossword PuzzlesSection 194B – Winning from Lottery or Crossword Puzzles

(a)(a) Any person responsible for paying income by way of winning from Any person responsible for paying income by way of winning from Lottery/crossword puzzle or card game or any other game is required to Lottery/crossword puzzle or card game or any other game is required to deduct tax at source.deduct tax at source.

(b)(b) No tax is deductible if the amount of payment is Rs.5,000/- or less. No tax is deductible if the amount of payment is Rs.5,000/- or less.

Section 194C – Payment to Contractor/Sub-contractorsSection 194C – Payment to Contractor/Sub-contractors

(a)(a) Any person (other than individual and HUF) paying any sum to any resident Any person (other than individual and HUF) paying any sum to any resident contractors for carrying out any work (including supply of labour for carrying contractors for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the resident contractor out any work) in pursuance of a contract between the resident contractor and specified person is required to deduct tax at source. The same rule is and specified person is required to deduct tax at source. The same rule is applicable in case payment is made by a resident contractor to a resident applicable in case payment is made by a resident contractor to a resident sub-contractor for carrying out he whole or any part of the work undertaken sub-contractor for carrying out he whole or any part of the work undertaken by the contractor or for supplying whether wholly or partly any labour, which by the contractor or for supplying whether wholly or partly any labour, which the contractor has undertaken to supply.the contractor has undertaken to supply.

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(b)(b) However, an individual or a HUF whose total sales or gross receipts or However, an individual or a HUF whose total sales or gross receipts or turnover from business exceeds Rs.40 lakhs or whose gross receipts from turnover from business exceeds Rs.40 lakhs or whose gross receipts from profession exceeds Rs. 10 lakhs during the financial year immediately profession exceeds Rs. 10 lakhs during the financial year immediately preceding the financial year which such sum is credited or paid to the account preceding the financial year which such sum is credited or paid to the account of sub-contractor shall be liable to deduct tax at source.of sub-contractor shall be liable to deduct tax at source.

(c)(c) Tax is required to be deducted either the time of credit of the sum paid to the Tax is required to be deducted either the time of credit of the sum paid to the account of the payee or at the time of payment in cash or by cheque or by any account of the payee or at the time of payment in cash or by cheque or by any other mode, whichever is earlier.other mode, whichever is earlier.

(d)(d) With effect from 1With effect from 1stst October, 2004, Section 194C has been amended to October, 2004, Section 194C has been amended to provide that tax will be required to be deducted at source where the amount provide that tax will be required to be deducted at source where the amount credited or paid to the contractor or a sub-contractor exceeds Rs.20,000 in a credited or paid to the contractor or a sub-contractor exceeds Rs.20,000 in a single payment or Rs.50,000 in the aggregate during the financial year.single payment or Rs.50,000 in the aggregate during the financial year.

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Section 194D – Insurance CommissionSection 194D – Insurance Commission

(a) Any person responsible for paying insurance commission to a resident is (a) Any person responsible for paying insurance commission to a resident is required to deduct tax at source. required to deduct tax at source.

(b) No tax is deductible if the amount of insurance commission or aggregate of (b) No tax is deductible if the amount of insurance commission or aggregate of the amount of such income credited/paid during the financial year does not the amount of such income credited/paid during the financial year does not exceed Rs.5,000/-.exceed Rs.5,000/-.

Section 194E – Payment to Resident Sportsman/Sports AssociationSection 194E – Payment to Resident Sportsman/Sports Association

(a)(a) Any person responsible for paying any income to a non-resident sportsman Any person responsible for paying any income to a non-resident sportsman including an athlete who is not a Citizen of India or a non-resident Sports including an athlete who is not a Citizen of India or a non-resident Sports Association or Institution is required to deduct tax at source.Association or Institution is required to deduct tax at source.

(b) The tax is required to be deducted at the time of credit of such income to the (b) The tax is required to be deducted at the time of credit of such income to the account of payee or at the time of payment in cash or by issue of cheque or account of payee or at the time of payment in cash or by issue of cheque or draft or by any other mode whichever is earlier.draft or by any other mode whichever is earlier.

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Section 194EE – Payment in respect of deposits under National Savings Section 194EE – Payment in respect of deposits under National Savings SchemeScheme

(a) Any person responsible for paying to any person any amount referred to in (a) Any person responsible for paying to any person any amount referred to in Section 80CCA(2) is required to deduct Income Tax.Section 80CCA(2) is required to deduct Income Tax.

(b) No deduction is required to be made where the amount of such payment or (b) No deduction is required to be made where the amount of such payment or the aggregate amount of such payments during the financial year is less the aggregate amount of such payments during the financial year is less than Rs.2,500/-. than Rs.2,500/-.

Section 194F – Payment on account of Repurchase of Units by Mutual Section 194F – Payment on account of Repurchase of Units by Mutual Funds or UTIFunds or UTI

Any person responsible for paying to any person any amount referred to in Any person responsible for paying to any person any amount referred to in Section 80CCB(2) is required to deduct tax at source at the time of payment Section 80CCB(2) is required to deduct tax at source at the time of payment without any exemption.without any exemption.

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Section 194G – Commission etc. on the sale of Lottery TicketsSection 194G – Commission etc. on the sale of Lottery Tickets

Any person who is responsible for paying commission, remuneration or prize to Any person who is responsible for paying commission, remuneration or prize to any person who is or has been stocking, distributing, purchasing or selling any person who is or has been stocking, distributing, purchasing or selling lottery tickets is required to deduct tax at source on such tickets on an amount lottery tickets is required to deduct tax at source on such tickets on an amount exceeding Rs.1,000/-.exceeding Rs.1,000/-.

Section 194H – Commission or BrokerageSection 194H – Commission or Brokerage

a) Any person other than an individual or Hindu Undivided Family who is a) Any person other than an individual or Hindu Undivided Family who is responsible for paying on or after 1responsible for paying on or after 1stst June, 2001, to a resident, any income June, 2001, to a resident, any income by way of commission (other than insurance commission referred to in by way of commission (other than insurance commission referred to in section 194D), or brokerage, is required to deduct tax.section 194D), or brokerage, is required to deduct tax.

(b) No deduction is required to be made where the amount of such income or (b) No deduction is required to be made where the amount of such income or

the aggregate of the amounts of such income credited/paid during the the aggregate of the amounts of such income credited/paid during the financial year does not exceed Rs.2,500/-. financial year does not exceed Rs.2,500/-.

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Section 194 I – RentSection 194 I – Rent

(a) Any person other than an individual or Hindu Undivided Family responsible (a) Any person other than an individual or Hindu Undivided Family responsible for paying rent to resident any income by way of rent is required to deduct for paying rent to resident any income by way of rent is required to deduct tax.tax.

(b) ‘Rent’ means any payment by whatever nature called, under any lease, sub-(b) ‘Rent’ means any payment by whatever nature called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any:separately or together) any:

(i) land, or(i) land, or (ii) building (including factory building), or(ii) building (including factory building), or (iii) land appurtenant to a building (including a factory building), or(iii) land appurtenant to a building (including a factory building), or (iv) machinery, or(iv) machinery, or (v) plant, or(v) plant, or (vi) equipment, or(vi) equipment, or (vii) furniture, or(vii) furniture, or (viii) fittings(viii) fittings

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Any hire charges paid for hiring Motor Cars would also get covered under the Any hire charges paid for hiring Motor Cars would also get covered under the ambit of TDS u/s 194-I. The amendment has simply expanded the coverage of ambit of TDS u/s 194-I. The amendment has simply expanded the coverage of section 194-I to include machinery or plant or equipment within its ambit. section 194-I to include machinery or plant or equipment within its ambit.

c) From 1c) From 1stst June, 2002 an individual or a Hindu Undivided Family whose total June, 2002 an individual or a Hindu Undivided Family whose total sales or gross receipts or turnover from business exceeds Rs.40 lacs or sales or gross receipts or turnover from business exceeds Rs.40 lacs or whose gross receipts from profession exceeds Rs.10 lacs during the whose gross receipts from profession exceeds Rs.10 lacs during the financial year immediately preceding the financial year in which such sum is financial year immediately preceding the financial year in which such sum is credited or paid shall be liable to deduct tax at source. credited or paid shall be liable to deduct tax at source.

d) No deduction shall be made where the amount of such income or the d) No deduction shall be made where the amount of such income or the aggregate of amounts of such income credited/paid during the financial year aggregate of amounts of such income credited/paid during the financial year does not exceed Rs.1,20,000/-.does not exceed Rs.1,20,000/-.

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a) Any person other than individual or HUF responsible for paying to a resident a) Any person other than individual or HUF responsible for paying to a resident fee for professional services or fee for technical services is required to deduct fee for professional services or fee for technical services is required to deduct tax on the income comprised therein.tax on the income comprised therein.

(b) “Professional services” means services rendered by a person in the course (b) “Professional services” means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purpose advertising or such other profession as is notified by the Board for the purpose of section 44AA or of this section.of section 44AA or of this section.

(c) “Fees for technical services” shall have the same meaning as in (c) “Fees for technical services” shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9 – For the purpose Explanation 2 to clause (vii) of sub-section (1) of section 9 – For the purpose of this clause “Fees for technical services” means: any consideration of this clause “Fees for technical services” means: any consideration (including any lump sum consideration) for the rendering of any managerial, (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provisions of services of technical or consultancy services (including the provisions of services of technical or other personnel), but does not includetechnical or other personnel), but does not include

Section 194 J – Fees for Professional or Technical ServicesSection 194 J – Fees for Professional or Technical Services

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consideration for any construction, assembly, mining or like product consideration for any construction, assembly, mining or like product undertaken by the recipient or consideration which would be income of the undertaken by the recipient or consideration which would be income of the recipient chargeable under the head ‘salaries’. recipient chargeable under the head ‘salaries’.

d) d) The tax is required to be deducted at the time of credit of such income to the The tax is required to be deducted at the time of credit of such income to the account of the payee or at the time of payment in cash or by issue of account of the payee or at the time of payment in cash or by issue of cheques or drafts or by any other mode whichever is earlier.cheques or drafts or by any other mode whichever is earlier.

No tax is required to be deducted in case amount of such sum or aggregate No tax is required to be deducted in case amount of such sum or aggregate of amount of such sums credited or paid during the financial year does not of amount of such sums credited or paid during the financial year does not exceed Rs.20,000/-.exceed Rs.20,000/-.

(e)(e) With effect from 1With effect from 1stst June, 2003 no individual or HUF shall be liable to deduct June, 2003 no individual or HUF shall be liable to deduct tax on fees for professional services in case such sum is credited or paid tax on fees for professional services in case such sum is credited or paid exclusively for personal purposes of such individual or any member of HUF. exclusively for personal purposes of such individual or any member of HUF.

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a) a) For tax-deductible u/s 192, 193, 194, 194A, 194C, 194D, 194G, For tax-deductible u/s 192, 193, 194, 194A, 194C, 194D, 194G, 194H, 194-I, 194J, 194K, 194LA or 195.194H, 194-I, 194J, 194K, 194LA or 195.

(b) The recipient can apply in Form No.13 to the Assessing Officer to (b) The recipient can apply in Form No.13 to the Assessing Officer to get a certificate authorizing the payer to deduct tax at lower or get a certificate authorizing the payer to deduct tax at lower or deduct no tax as may be appropriate.deduct no tax as may be appropriate.

c) The certificate of lower rate shall be issued on plain paper c) The certificate of lower rate shall be issued on plain paper directly to the person responsible for paying income, under an directly to the person responsible for paying income, under an advice to the applicant. advice to the applicant.

Section 197 – Obtaining a Certificate of Lower Rate from Section 197 – Obtaining a Certificate of Lower Rate from

the Assessing Officerthe Assessing Officer

However in the case of entities covered by Rule 28AB, the However in the case of entities covered by Rule 28AB, the Assessing Officer may issue a certificate to the recipient Assessing Officer may issue a certificate to the recipient authoring payment of income without deduction of tax at authoring payment of income without deduction of tax at source. The recipient may furnish copies of such certificate to source. The recipient may furnish copies of such certificate to the person responsible for paying the income for the purpose the person responsible for paying the income for the purpose of no deduction of tax at source. of no deduction of tax at source.

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In Madumilan Syntex Ltd. vs. Union of India (2007) 160 Taxman 71(SC)In Madumilan Syntex Ltd. vs. Union of India (2007) 160 Taxman 71(SC) ““The contention of the appellant that though tax deducted at source had been deposited late but since TDS had already The contention of the appellant that though tax deducted at source had been deposited late but since TDS had already been deposited to the account of the Central Government, there was no default and no prosecution can be ordered, could been deposited to the account of the Central Government, there was no default and no prosecution can be ordered, could not be accepted.not be accepted.

Once a statute requires to pay tax and stipulates period within which such payment is to be made, the payment must be Once a statute requires to pay tax and stipulates period within which such payment is to be made, the payment must be made within that period. If the payment is not made within that period, there is default and an appropriate action can be made within that period. If the payment is not made within that period, there is default and an appropriate action can be taken under the Act. Interpretation canvassed by the appellant would make the provision relating to prosecution nugatory.”taken under the Act. Interpretation canvassed by the appellant would make the provision relating to prosecution nugatory.”

CASE STUDY ICASE STUDY I

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a) a) Reimbursement of expenses actually incurredReimbursement of expenses actually incurred

b) b) Service tax levied on the services rendered – whether liable for TDSService tax levied on the services rendered – whether liable for TDS

Ref: CBDT Circular No. 715 dated 08.08.1995 : Question No. 30.Ref: CBDT Circular No. 715 dated 08.08.1995 : Question No. 30. CBDT Circular No. 718 dated 22.08.1995 : Question No. 4.CBDT Circular No. 718 dated 22.08.1995 : Question No. 4.

ITO Vs Dr. Willimar Schwabe India (P) Ltd. (2005) 3 SOT 71ITO Vs Dr. Willimar Schwabe India (P) Ltd. (2005) 3 SOT 71

CIT Vs. Laxmi Machine Works (2007) 290 ITR 667 (SC)CIT Vs. Laxmi Machine Works (2007) 290 ITR 667 (SC)

SS & Company Vs. State of Punjab, 268 ITR 398 (P&H)SS & Company Vs. State of Punjab, 268 ITR 398 (P&H)

CASE STUDY IICASE STUDY II

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Section 198, 199 do not determine year of chargeability to tax – Sections 4, 5, 28, Section 198, 199 do not determine year of chargeability to tax – Sections 4, 5, 28, 145 are charging sections and determine the year of chargeability to tax. 145 are charging sections and determine the year of chargeability to tax.

Income as per method of accounting regularly followed, credit of TDS is attached to Income as per method of accounting regularly followed, credit of TDS is attached to it. it. Smt. Varsha G. Salunke vs. DCIT (2006) 281 ITR (AT Sec) (Bom.) 55 (TM)Smt. Varsha G. Salunke vs. DCIT (2006) 281 ITR (AT Sec) (Bom.) 55 (TM)

CASE STUDY IIICASE STUDY III

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Labels sold after the printing logo, trademark as per directions of the customer, is a Labels sold after the printing logo, trademark as per directions of the customer, is a sale and not a works contract which contrary to Circular No. 715 dated 08/08/95 sale and not a works contract which contrary to Circular No. 715 dated 08/08/95 Question No. 15Question No. 15 DBA Ltd. vs. ITO (2006) 281 ITR (Bom.) 99DBA Ltd. vs. ITO (2006) 281 ITR (Bom.) 99 CIT vs. Dabur India Ltd. (2006) 283 ITR (Del) 197CIT vs. Dabur India Ltd. (2006) 283 ITR (Del) 197

CASE STUDY IVCASE STUDY IV

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Simply because the assessee monitors the manufacturing process, it does Simply because the assessee monitors the manufacturing process, it does not change the character if the transaction not change the character if the transaction

Sec 194C / Mumbai ITAT - Glenmark Pharmaceuticals Ltd vs. ITO (TDS)Sec 194C / Mumbai ITAT - Glenmark Pharmaceuticals Ltd vs. ITO (TDS)

CASE STUDY VCASE STUDY V

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Landing fee and parking fee at the airport for aircraft is rent within the Landing fee and parking fee at the airport for aircraft is rent within the definition of section 194I liable for TDS.definition of section 194I liable for TDS.

United Airlines vs. CIT (2006) 287 ITR (Del) 281United Airlines vs. CIT (2006) 287 ITR (Del) 281

CASE STUDY VICASE STUDY VI

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Specific provision will override the general provision – contractors’ payment specifically covered u/s.194C, will not be covered under general Specific provision will override the general provision – contractors’ payment specifically covered u/s.194C, will not be covered under general provisions of section 194J.provisions of section 194J. CIT vs. Prasar Bharti (2007) 208 CTR 317 (Del)CIT vs. Prasar Bharti (2007) 208 CTR 317 (Del)Glaxo Smithkline Healthcare Services Ltd. vs. ITO (2007) 12 SOT 221 (Del)Glaxo Smithkline Healthcare Services Ltd. vs. ITO (2007) 12 SOT 221 (Del) Each section regarding TDS under Chapter XVII deals with the particular kind of payment to the exclusion of all other sections in this Chapter. Thus, Each section regarding TDS under Chapter XVII deals with the particular kind of payment to the exclusion of all other sections in this Chapter. Thus, payment of any sum shall be liable for deduction of tax only under one sectionpayment of any sum shall be liable for deduction of tax only under one section Ref: CBDT Circular No. 720 dated 30Ref: CBDT Circular No. 720 dated 30 thth August 1995. August 1995.

CASE STUDY VIICASE STUDY VII

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