Deduction at source

The amount received as rent against furniture and fixture attracts the provisions of s 194C, as held by DelTrib in ITO v Elsamex India Pvt Ltd — In favour of: The revenue (partly).

The assessee who had subcontracted the work to subcontractors was liable to deduct TDS under s 194C(2) and the assessee was liable to withhold tax at 1% on the payment to the subcontractors.

Decided on: 16 September 2011.