Sum paid for maintenance of medical equipments is liable for sec. 194C TDS & not 194J TDS

Sum paid for maintenance of medical equipments is liable for sec. 194C TDS & not 194J TDS

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Sum paid for maintenance of medical equipments is liable for sec. 194C TDS & not 194J TDS

Commissioner of Income-tax (TDS)-2 v. Saifee Hospital – [2019] 104 taxmann.com 64 (Bombay)
Assessee purchased medical equipments from a vendor for which he also rendered services of maintenance. Assessee made payment to the vendor for the maintenance services and deducted TDS u/s 194C on the same. However, the department contended that the deduction should have been made u/s 194J since the services for which the payment was made were technical in nature.
Assessee made an appeal to the ITAT, which held that payments were made for services rendered in respect of medical equipments were only in nature of maintenance services provided to ensure that equipment function properly and would enable those equipments to provide services for a long time and, hence, same did not involve any technical service which would require TDS deduction under section 194J.
Further, revenue made an appeal to the High Court against the order of the ITAT. HC observed the order made by the ITAT with the findings that the service for which payment was made did not involve any technical service. The Court dismissed the appeal stating that the question didn’t involve any question of law and hence, couldn’t be entertained.

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