Whenever zero fee is actually debited or paid to help you particular party’s accounts, up coming particularly payment can not be noticed inside the ambit from sec 194C and other TDS arrangements.
There is no uniform measuring stick to measure the fresh wastage in almost any procedure for development of goods. After that wastage greet of the assessee so you’re able to goldsmith was a matter of organization prudence/commercial expediency and the exact same cannot be contacted so you can question by the AO unless of course he has got proof to prove the exact same are too much.
Since assessee have neither debited to make charges for the P & L a beneficial/c neither paid one total parties’ account, issue regarding application of sec 194C will not happen.
Because zero Independent evidence might have been created listing by AO to help with his conclusions, due to the fact up against assessee having lead needed evidences to prove one to while making costs might have been independently paid off and TDS deducted wherever applicable, the fresh new inclusion can’t be suffered.
S. 194-IA : TDS – Payment out of Refundable 
Protection Put from the developer so you’re able to Landowners of the advantage of JDA – Whether Down-payment not related to import away from immovable assets accountable so you’re able to TDS u/s 194-IA ? [Sec 201(1)]
S. 195 : TDS – Percentage so you can non-resident overseas – Agency Agreement – Dominating and you can broker relationship – Conversion payment to have qualities rendered additional Asia – Maybe not secured u/s 195 [Sec
Assessee Team, a designer, registered to your JDA cum general fuel regarding attorney which have landowners, for which the fresh landowners accessible to import a portion of property, instead of share inside superstructure which is is developed of the developer. The fresh Developer in turn agreed to pay refundable safety deposit. In addition, the brand new said put according to terms of JDA is recovered from the sale of your own part of the owner’s created area.
A beneficial.O kept that the refundable cover deposit are consideration having transfer out of immovable possessions by designer to the landowners liable to TDS you/s 194-IA, and you will addressed the brand new assessee, just like the assessee inside the default u/s 201(1).
There is certainly zero transfer from immovable assets from inside the year not as much as consideration, as transferee was not able to over one acts as said during the JDA.
The safety deposit cannot be managed since advance payment since exact same wasn’t linked to import of immovable property due to the fact enumerated into the s 194-IA.
The current presence of money is good sin qua low to have attracting TDS arrangements which the latest refundable cover deposit paid down didn’t make-up income during the give from residential property residents.
Assessee Business designated a just supplier, to market the activities and you will qualities available with the assessee company by the getting in touch with and contacting companies located in UAE, and relationships is actually strictly that dominant and you may agent
Predicated on significantly more than it was kept you to assessee was not responsible to help you deduct TDS you/s 194-IA out-of said refundable shelter deposit and should not getting treated while the assessee in standard u/s 201(1) (AY. 2014-15)
This new commission staying in characteristics out-of sales promotion expenditure to have attributes made additional India, for this reason not dropping into the category of income received otherwise considered to getting received inside the Asia, and additionally money accruing or developing or considered so you’re able to accrue or develop within the India not attracting TDS you/s 195.
A good.O invoked specifications out of sec 40(a)(i) and you may disallowed brand new fee paid dealing with like Joint venture arrangement according to research by the sorts of determination regarding fee amount.
Important requirement in order to deduct Income tax from the origin, is that the sum has to be rechargeable under the conditions of Act so you can shed an obligation u/s 195(1)
Due to the fact relationship is the fact of dominating and you can broker, the newest form regarding dedication away from fees just like the arranged between several activities can’t be construed given that a jv, to carry the fresh percentage paid down underneath the net regarding Sec 195, more so when the qualities were made exterior Asia and you may did perhaps not belong group of money obtained otherwise deemed becoming obtained inside the India, and consequently the fresh new provisions from sec 40(a)(i) can not be invoked. (AY. 2013-14)