TDS liability doesn't arise on payments made to NR shipping Cos or its agents
[2015] 57 taxmann.com 350 (Ahmedabad - Trib.)
IN THE ITAT AHMEDABAD BENCH 'B'
Income Tax Officer, Ward-1(2), Ahmedabad
v.
Anchor Cagrolines (P.) Ltd.
Section 194C, read with section 40(a)(ia), of the Income-tax Act, 1961 - Deduction of tax at source - Contractors/sub-contractors, payments to (Payment to agent of non-resident shipping company) - Assessment year 2005-06 - Assessee made payment to shipping companies - Assessing Officer by invoking section 40(a)(ia) disallowed said payments on ground that no TDS was deducted - On appeal, Commissioner (Appeals) after verifying all copies of bills of lading and exports found that all payments were made to agent of non-resident shipping companies - He held that assessee was not required to deduct TDS under section 194C and, therefore, no disallowance could be made under section 40(a)(ia) - Whether order passed by Commissioner (Appeals) was justified - Held, yes [Para 4.3] [In favour of assessee]
Circulars and Notifications : CBDT Circular No. 723, dated 19-9-1995
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