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MISCELLANEOUS ISSUES
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Situation 1: Whether sharing of an
office and utilization of other facilitative services are taxed under
the purview of Section 194- I?
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Where payment was made by the assessee company to another company
towards sharing office and for utilization of other facilitative
services, it was held that payment made for the use and occupation of
premises with furniture and fixture etc. shall be construed as rent
and therefore Section 194-I stands applicable. [Wipro GE Medical
systems Ltd. vs. ITO]
Situation 2: Whether right of displaying advertisements at hoarding
sites belonging to others, will attract TDS under Section 194-I?
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In a case where an assessee had taken and acquired only right of
displaying advertisement at a hoarding site belonging to others and
payment was made by the assessee to hoarding site owners was for
commercial exploitation of display right and not for using hoarding
sites under lease or subleases, tenancy etc. and as such, assessee was
nit liable to deduct tax at source under Section 194-I from such
payments, then TDS has to be done @ 1%.
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