02 June 2009
TDS on car parking space will be deducted under section 194C. In the case of DCIT VS Japan Airlines (2005) 93 ITD 163 Delhi ITAT has held that parking charges and landing charges paid by the airlines to airport authority is not in the nature of rent. Hence TDS on such payment be deducted u/s 194C. Taking a clue from the this decided case, it can be comfortably concluded that on payment of car parking expenditure the provision of section 195C shall apply.
02 June 2009
In my opinion it should be deducted u/s 194I since charges are paid for usage of the land and there is no contract of work and labour here for deduction u/s 194C. The said judgement is contravening the section and law itself and therefore is bad in law. Also, it has held in the case of Kohinoor Infrastructure Ltd. V/s CIT(A) Mumbai that pay & park charges are liable for deduction u/s 194I.
02 June 2009
In the case cited by Mr.Dua charges are levied based on the weight and not based on use of land. Hence it may be distinguished for cited query. On the other hand the case law cited by Mr.Wadhwani will hold good and accordingly 194I attracts.
03 June 2009
WHAT IS CONTEMPLATED BY 206C(1C) where it says that every person, who grants a lease or license or enters into contract or otherwise or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as licensee or lessee) for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting of the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipt of such amount from the licensee or lessee in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the licensee or lessee of any such licence, contract or lease
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