INCOME TAX ACT, 1961

Section 194C read with Section 194J

Tax deduction at source - Under section 194C or 194J - Carriage fees and sub-titling charges paid by assessee engaged in broadcasting -

Assessee was a Public Limited Company carrying on business of broadcasting of Television (TV) channels. Survey was carried out firstly of the books of account of the assessee. AO found that certain amounts were paid by assessee on account of carriage fees, editing expenses and sub-titling and tax was deducted on the said amounts as per section 194C. AO was of the opinion that the carriage fees, editing charges and dubbing charges were in the nature of fees payable for technical services and, therefore, tax should have been deducted under section 194J. After considering the reply of assessee, AO was of view that tax should have been deducted under section 194J and passed an order under section 201(1)/201(1A) for short deduction of tax Held: Work of subtitling will be covered by the definition of 'work' in clause (iv) of Explanation to section 194C. Sub-clause (b) of clause (iv) of the Explanation to section 194C covers the work of broadcasting and telecasting including production of programmes for such broadcasting or telecasting. When services are rendered as per the contract by accepting placement fee or carriage fee, the same are similar to the services rendered against the payment of standard fee paid for broadcasting of channels on any frequency. By no stretch of imagination these could be termed as professional fees and these are performed under a contract therefore ,section 194C was rightly applied.

Followed:The Commissioner of Income Tax, TDS 2 Mumbai v. M/s. UTV Entertainment Television Ltd. (2017) 88 taxmann.com 214 (Bombay) : 2017 TaxPub(DT) 4885 (Bom-HC), The Asst. Commissioner of Income Tax (TDS) 3 (1) , Mumbai v. M/s. UTV News Limited [I.T.A. No.2697, 2698, 4206 and 4207/Mum/2012, dt. 16-10-2015]

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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