14 November 2013
Business requires good contacts. . A Contact when converts into a contract, it results into a business relationship. . So you can say that a business runs on the basis of contacts and contracts. . All the contracts have got different names. . When a specific name is given to a contract it becomes a specific contract. It may be covered by a specific provision of the law, which supersedes the general provision. . So in my view 194I is applicable. .
14 November 2013
Sir but when we take a space on rent, the utilisation of the space is in our control, but here we are just utilising a part of the total arena available and there is a lessor and lessee relationship. so in that situation also it will be 194I ??
14 November 2013
The payments to the lessor, if otherwise are not named in the agreement differently, are generally known as lease rentals. . The company exercises effective control over the space. . Further, using of a part or whole, does not make in the nature of the payment. . So, I would still advise to treat the said transaction U/s 194I. This safer position costs nothing extra to the company.
20 December 2013
one more thing whether the storage tanks fall under the definition of Plant & Machinery ???? and in that case what will be effective rate of TDS 2% or 10%????
CAclubindia
