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November 2024

Ss. 194-I, 194C — Where Common Area Maintenance (CAM) charges are for separate and distinguishable services, the applicable rate of TDS is 2 per cent under section 194 C, and not 10 per cent under section 194-I.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 2 mins

54. Benetton India (P.) Ltd. vs. JCIT

(2024) 167 taxmann.com 76 (DelTrib)

ITA No.:5774 (Del) of 2019

A.Y.: 2011–12

Date of Order: 28th August, 2024

Ss. 194-I, 194C — Where Common Area Maintenance (CAM) charges are for separate and distinguishable services, the applicable rate of TDS is 2 per cent under section 194 C, and not 10 per cent under section 194-I.

FACTS

The assessee was in the business of manufacturing and trading of readymade garments. For the purpose of carrying out its business, it had taken on lease a unit / shop in a mall. During FY 2010–11, it had paid rent, Common Area Maintenance (CAM) and miscellaneous amenity charges to the payee. Value of the services for the aforesaid charges had been separately quantified under the different agreements, and the paymen

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