RSS

Section 194-I : Distinction between “hire of vehicles” & “transportation contract”.

08 Jan

read here – 10_12_11_Case1

 

M/S. SKIL INFRASTRUCTURE LTD. Vs. INCOME TAX OFFICER – TDS 3(3), ITA NO. 3419 & 3420/MUM/2010, DATE OF PRONOUNCEMENT : 31.10.2011, ITAT – MUMBAI

The department’s argument that the assessee has hired helicopter/air craft/vehicle is not correct because these were not hired on a periodic basis or on day-to-day basis. Instead, the transport services provided by the transporters were availed of. The assessee paid charges on the basis of flying hours, cost of landing charges and refuelling charges, etc. The crew, fuel, maintenance operation licences, etc. were all under the control of the service providers and not under the control of the assessee. If the assessee does not enjoy control over the vehicles and if the running and maintenance expenditure is borne by the transport service providers, the contract is not one for the “hiring” but is merely for availing transportation services.Payment for transportation services is not covered by s. 194-I.

SEC 194 I – 17_12_11_Case_1

 

2 cases discussed herewith…. above…..

 
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Posted by on January 8, 2012 in Uncategorized

 

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