We are doing storage and warehousing services to oil industry. Payments relates to the said service comes under commission or contract. we were deducting presently @ 10% under 194J.
6 Replies
darpan chheda
(Accounts Manager)
(90 Points)
Replied 02 September 2010
The question is not clear sir... R u providing godown/warehouse for their storage of goods on rent...? Please clarify...
Thankx
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 02 September 2010
Please clarify the same in detail
durga prasad
(sr.manager)
(31 Points)
Replied 02 September 2010
we are the providers of storage and warehousing to oil industry.
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 02 September 2010
in the given case, i hope u provide specialised services other than just storage. Coz, u would be having some specialised equipments in order to avoid evaporation. Hence, storage is just incidental. Hence, 194-I(RENT) is not attracted. However, u would have entered into a contract. So TDS is to be deducted under sec.194C.
HOWEVER, IF THE MAIN PURPOSE IS ONLY STORAGE AND U DO NOT PROVIDE ANY SPECIALISED EQUIPMENTS TO STORE THE OIL, SEC.194-I IS ATTRACTED. PLS REFER CBDT CIRCULAR NO.1/2008 DT.10/01/2008
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 02 September 2010
Dear Deepak,
I dont think 194 I will apply in the give case, because the product is oil. Storage is just incidental. The main purpose is protect the oil from evaporation with the help of specialised equipments. So 194C is to be attracted
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