Search Results For: 194I


QUERY: BIDCO which is a State Industrial Development Corporation grants a 99 year lease and collects a lump sum premium for granting the lease amounting to Rs. 40 crores. Yearly rent is Rs. 1,000/- . Whether section 194-I is applicable on the lump sum amount?
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In ITO (TDS) v. Navi Mumbai SEZ (P) Ltd. [38 Taxmann.com 218] the Mumbai Tribunal has taken a view that lease premium paid by the assessee to BIDCO for acquiring leasehold land for a period of 60 years in order to develop a SEZ amounted to capital expenditure which did not fall within meaning of rent under section 194-I of the Act.

QUERY: BIDCO which is a State Industrial Development Corporation grants a 99 year lease and collects a lump sum premium for granting the lease amounting to Rs. 40 crores. Yearly rent is Rs. 1,000/- . Whether section 194I is applicable on the lump sum amount?
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EXPERT:
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In ITO (TDS) v. Navi Mumbai SEZ (P) Ltd. [38 Taxmann.com 218] the Mumbai Tribunal has taken a view that lease premium paid by the assessee to BIDCO for acquiring leasehold land for a period of 60 years in order to develop a SEZ

QUERY: PQR Group is into various businesses in India. It has a holding company which has various subsidiary companies each carrying out different business. The holding company has taken a complete building on rent wherein each floor is occupied by a subsidiary company. The rent is paid by holding company after due deduction of taxes at sources. At the year end, the rent is apportioned to all the subsidiary companies in the ratio of utilisation of premises by each of them. Whether the subsidiary companies are liable to deduct tax at source from such apportionment by the holding company?
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When a holding company paid rent to the landlord, it deducted the tax and paid to the Central Govt. At the end of the year, the holding company apportioned the rent on the basis of ratio of utilisation of premises by the subsidiary companies

QUERY: ABC Pvt. Ltd., is engaged in the business of manufacturing of coke. The company purchases raw material from another company XYZ Ltd. As per agreed terms, ABC Pvt. Ltd., had reimbursed certain expenses incurred by XYZ Ltd., towards ground rent, wharfage charges, stevedoring charges, etc. The reimbursement does not contain any mark up and bills of actual services provided on XYZ Ltd., along with debit note for reimbursement of expenses. These expenses are accounted in the books of ABC Pvt. Ltd., and profit and loss account reflects each such expenses separately.

(a) Whether ABC Pvt. Ltd., is liable to deduct TDS on reimbursement of expenses to XYZ Ltd.
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On reimbursement of expenses no TDS is required to be deducted as per judgment of the Supreme Court in GE India Technology Centre Pvt. Ltd., v. CIT [327 ITR 456].