Deduction at source

The assessee is required to deduct TDS in respect of vehicle hire charges under section 194C and not under section 194-I — as held by AhdTrib in Nuclear Power Corporation of India Ltd v ITO — In favour of: The revenue.

The lumpsum food allowance provided by the assessee-company to its employees working in a remotely located plant does not amount to perquisite; the assessee was required to deduct tax as per the income slab of each employee.

The amount paid towards the annual maintenance contract of Telephone Exchange and Computers by the assessee could not be considered as fee for technical services within the meaning of s 194J and assessee is liable to deduct TDS under s 194C.

In favour of: The assessee

Decided on: 30 September 2011.