ICAI_CIRC_MEERUT_CA : Message: Re: -TDS u/s 194J -URGENT

Page 1 of 4

New User? Register

Sign In

Help

Upgrade to Safer IE8

Mail

My Y!

Yahoo!

Search

Search Web

ICAI_CIRC_MEERUT_CA Chartered Accountant India AmreshVashist

Search for other groups...

Home Messages Attachments

Members Only

Messages

Please provide the full sitation of this -TDS u/s 194J -URGENT Topic List <Prev Topic case laws........this is urgent .. thanks. Reply <Prev Message | Next Message >
Message # Go Search: Search
Advanced

Post Files Photos Links Database Calendar Promote Groups Labs (Beta) Chat Dear Deepak/Neetu, Following the judgement of Delhi Tribunal i beleive that no TDS will be applicable u/s 194J for participation fees paid for attending a conference since it cannot be said that attending a conference will result in rendering of professional/technical services liable for TDS u/s 194J. Luckily i was able to get the Tribunal judgement, the summary of which i am forwarding for your information. Trust it will resolve your query. Regards CA Amit Malhotra New Delhi Issue Whether TDS provision is attracted on tuition fees & other training expenses paid to management training institutes ? Judgement Assessee is a Joint Venture Company - pays a lumpsum amount to a management training institute towards tuition fee and other trainingrelated expenses for its Executive Director AO is of the view that professional service was provided to the assessee and it should have deducted TDS. CIT(A) disagrees - Sec 194J applies only where a person pays to another person as fees for professional services - A management institute only imparts knowledge to a participant and the participant cannot be said to be a recipient of a professional service
Show Message Info

Re: -TDS u/s 194J -URGENT

Wed Feb6,20086:44pm

amit malhotra <thisisamitmalhotra@ thisisamitma...

Offline Send Email

Info

Settings

Group Information
Members: 10144 Category: Accountants Founded: Jun 26, 2004 Language: English

Already a member? Sign in to Yahoo!

Yahoo! Groups Tips

Did you know... Message search is now enhanced, find messages faster. Take it for a spin.

http://finance.groups.yahoo.com/group/ICAI_CIRC_MEERUT_CA/message/24051

09/05/12

ICAI_CIRC_MEERUT_CA : Message: Re: -TDS u/s 194J -URGENT

Page 2 of 4

Assessee gives contract to one of the partners in the JV - Deducts 1% TDS on payments made - AO is for treating the same as professional and technical service - Charges assessee for short deduction and levies penalty - CIT (A) refers the contract documents and disagrees with the AO - CIT(A) order is just and proper as the recipient has declared the entire payments received and also paid tax and no tax can be demanded from the person responsible for deducting tax for the same income - Revenue's appeal dismissed Brief Facts of the case This is an appeal by the Revenue against the Order dt. 01.11.2004 of CIT(A), Ghaziabad relating to the A.Y. 2002-2003. 1. The first ground of appeal of the Revenue reads as follows. " 1. The ld CIT(A) has erred in law and on facts in deleting the demand of Rs. 2,76,304/- out of Rs. 2,86,928/ - created u/s 201(1) of the I.T.Act on account of short deduction of tax at source and interest thereon u/s 201(1A) of the Act. On providing professional/technical (M/s MDI), Gurgaon and M/s Energo Engg. Projects Pvt. Ltd., New Delhi to the assessee company." 2. The respondent is a Joint Venture Company promoted by BSES Ltd. (now Reliance Energy Ltd.) and NTPC Ltd., a Government of India Enterprise and has its office at F31, Sector 6, Noida, U.P. The respondent company had filed its annual return of TDS in respect of payments made to contractors/ sub contractors, commission and professional fee with the ITO, TDS 8s Survey, Noida, in Form no. 26-C, 26-1 and 26-A respectively. The respondent company had made a payment of Rs. 1,94,000/- to Management Development Institute (M.D.I.), Gurgaon, for providing advanced management training to Shri S.C.Manocha, Executive Director, of the respondent during the F.Y. 2001-2002. Out of aforesaid amount, a sum of Rs. 95,000/- was towards tuition fee and balance sum of Rs. 99,000/= was towards cost of Overseas Learning, academic input traveling and medical insurance. The M.D.I. Gurgaon, is a pioneer institute in providing management training in the country and is running various kinds of management programmes. The said Institute runs advanced management programmes. The participants of the programmes are also provided incampus training as well as on Overseas locations. During the course of training, the Institute looks after the boarding and lodging of the participants as well. 3. According to the A.O., M.D.I, provided professional services to the Respondent and therefore the assessee when it paid training fee to M.D.I, ought to have deducted tax at source in terms of S. 194J and since there was a failure to do so held the Respondent to be an

http://finance.groups.yahoo.com/group/ICAI_CIRC_MEERUT_CA/message/24051

09/05/12

ICAI_CIRC_MEERUT_CA : Message: Re: -TDS u/s 194J -URGENT

Page 3 of 4

Assessee in default u/s 201(1) of the Act and also levied interest u/s 201(1A) of the Act. 4. Before CIT(A) the respondent contended that the MDI by charging the aforesaid amount have not rendered any professional consultancy to the respondent company. It was only a residential course, which was provided to the employee of the respondent company. It was submitted that there are lot of educational institutes both under the Government sector and in private sector, which receive their tuition and other educational fee from their students/participants. There is no provision for deduction of TDS for payment of such fees for tuition etc. for short term courses in the I.T.Act and hence no TDS was not deducted while making payment of Rs. 1,94,000/-. 5. The ld.CIT(A) held that the sum of Rs. 1,94,000/= paid by the respondent company to the M.D.I, was on account of tuition fee and other connected expenses on account of Educational Certificate Course provided to one of the employees of the respondent company and was not in the nature of the professional consultancy fee and hence the TDS provision was not applicable on the payment. 6. Before us the ld.D.R. relied on the order of the AO. We are of the view that the order of the CIT(A) on this issue is just and proper and calls for no interference. S.194J applies only where a person pays to another person a payment which is in the nature of fees for professional services. M.D.I is an Institution which provides management training and running various kinds of management programmes. By doing so it merely imparts knowledge on the participant. By no stretch of imagination can it be said that the participant is a recipient of professional service from M.D.I. The order of the CIT(A) is therefore confirmed and ground no. 1 filed by the Revenue is dismissed.

Looking for last minute shopping deals? Find them fast with Yahoo! Search.

Reply

<Prev Message |Next Message >

Expand Messages

Author

-TDS u/s 194J -URGENT Fees paid for attending Seminar/ Conference for "Oil & Refining" Are we as Engineering Company, liable to deduct TDS u/s 194J. Please clarify. Regards, Neetu... Re: -TDS u/s 194J -URGENT Dear Friend i dont know whether & how much this wl help u

Nahuja@...

Deepak Gadgil gadgildeepak...

http://finance.groups.yahoo.com/group/ICAI_CIRC_MEERUT_CA/message/24051

09/05/12

ICAI_CIRC_MEERUT_CA : Message: Re: -TDS u/s 194J -URGENT

Page 4 of 4

but all i hv on the subject is this ------ The Delhi tribunal has held that payments to institutions... -TDS u/s 194J -URGENT Hi, Participation fees for attending Conference is not liable to TDS u/s 194J, since it cannot be said that these type of conference(s) are/is providing "any... Re: -TDS u/s 194J -URGENT Please forward the case , if possible Regards, Neetu Ahuja... Re: -TDS u/s 194J -URGENT Hi Neetu, As asked please find the Case name and summary of said judgement for your information. Regards CA Amit Malhotra New Delhi Case Name ACIT, TDS &... Re: -TDS u/s 194J -URGENT Dear Deepak/Neetu, Following the judgement of Delhi Tribunal i beleive that no TDS will be applicable u/s 194J for participation fees paid for attending a...

amit malhotra thisisamitma...

Nahuja@...

thisisamitmalhotra thisisamitma...

amit malhotra thisisamitma...

<PrevTopic |Next Topic > Message # Go Search: Search

Advanced

SPONSOR RESULTS

Internal Audit
www.tiaa.co.uk - TIAA provides a full range of Internal Audit services tailored to

Complete Tax Resources

www.taxtalent.com - Everything related to taxes! Forum, news, help and more.

World Development Experts

www.MUNICIPALSOLUTIONS.org - Your next International Development partner.

Copyright 2012 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service - Copyright Policy - Guidelines NEW - Help

http://finance.groups.yahoo.com/group/ICAI_CIRC_MEERUT_CA/message/24051

09/05/12