When zero percentage was debited or credited so you can respective party’s profile, next eg percentage can not be experienced in the ambit out of sec 194C or other TDS conditions.
There’s no uniform measuring stick to help you assess the fresh waste in any procedure of creation of goods. Subsequent wastage welcome of the assessee so you can goldsmith are an issue out-of company wisdom/industrial expediency and also the exact same can not be called upon so you’re able to concern by AO unless of course they have evidence to prove that the same was too much.
As the assessee provides neither debited and also make fees to your P & L a beneficial/c nor credited any total parties’ account, practical question of application of sec 194C does not arise.
As zero Independent evidence has been caused number because of the AO to help with their results, since the against assessee which have lead requisite indications to show one while making fees might have been on their own repaid and TDS deducted regardless of where appropriate, brand new addition cannot be sustained.
S. 194-IA : TDS – Payment away from Refundable Defense Deposit from the designer so you can Landowners by advantage off JDA – If or not Advance payment not pertaining to import from immovable assets liable to TDS you/s 194-IA ? [Sec 201(1)]
S. 195 : TDS – Fee in order to low-citizen abroad – Agency Agreement – Prominent and you may broker relationship – Conversion commission to have characteristics made additional India – Perhaps not protected you/s 195 [Sec
Assessee Providers, a designer, inserted toward JDA spunk standard energy from lawyer with landowners, where brand new landowners accessible to import a fraction of house, instead of express during the superstructure which is is built by the developer. New Creator in turn agreed to spend refundable shelter put. Additionally, the newest told you deposit depending on terms of JDA might possibly be retrieved from the sale of one’s part of the user’s built city.
A good.O kept the refundable security put is actually believe to possess import regarding immovable possessions because of the designer with the landowners prone to TDS you/s 194-IA, and you may handled new assessee, once the assessee in standard you/s 201(1).
You will find no import of immovable assets for the year less than thought, because the transferee was not able to over people acts as mentioned in JDA.
The safety put can’t be addressed as the down payment since the exact same wasn’t regarding transfer regarding immovable property because the enumerated inside the s 194-IA.
The clear presence of money is a sin qua low to own attracting TDS arrangements and therefore new refundable security deposit repaid don’t form income for the hand off land owners.
Assessee Company appointed an only service provider, to market the actions and you can characteristics available with this new assessee providers because of the contacting and you will reaching out to companies based in UAE, and relationships is strictly regarding dominating and broker
Centered on a lot more than it had been stored you to assessee wasn’t accountable in order to deduct TDS you/s 194-IA of home told you refundable safeguards deposit and should not become handled since assessee in the default u/s 201(1) (AY. 2014-15)
The newest fee staying in nature away from conversion venture costs to possess functions rendered external Asia, ergo perhaps not shedding within the category of earnings acquired otherwise deemed so you’re able to become obtained during the Asia, as well as earnings accruing or developing or considered so you’re able to accrue or arise into the India maybe not drawing TDS you/s 195.
A good.O invoked terms away from sec 40(a)(i) and disallowed brand new commission paid off managing just like Partnership arrangement in accordance with the types of determination away from commission amount.
Practical criteria so you’re able to subtract Tax within provider, is the fact that share should be rechargeable under the arrangements of one’s Work so you’re able to shed an obligation you/s 195(1)
Because the relationship is that away from principal and you may broker, the new setting out-of commitment off charges since consented ranging from a few events can’t be construed once the a jv, to carry the fresh commission reduced in online from Sec 195, more so in the event the qualities were made additional India and you will did not fall-in group of earnings acquired or considered is received into the Asia, and consequently the fresh new arrangements away from sec 40(a)(i) can’t be invoked. (AY. 2013-14)