Search Results For: Atul Goyal

DATE: October 30, 2018 (Date of pronouncement)
DATE: November 3, 2018 (Date of publication)
AY: 2012-13
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S. 194C TDS: Law on whether the by-product allowed to be retained by the miller can be regarded as consideration 'paid' in kind by the procurement agency so as to create an obligation to deduct TDS thereon explained in the light of Kanchanganga Sea Foods Ltd. vs CIT 325 ITR 549 (SC) & other judgements

Though, before the milling of the paddy, the Government / procurement agencies remain the owner of the paddy, however, the moment the paddy is milled, the Government / procurement agencies lose their ownership and control over the paddy and the by-product but have right only on the ‘milled rice’ for which they pay a stipulated amount of Rs. 15/- as milling charges. The relevant words in the clause (8) of the Agreement that “the Government / Procuring Agency shall have no right or responsibility in this regard” speaks that to retain the by-product cannot always said to be ‘right’ over a thing but sometimes it becomes a ‘responsibility’ also and the Government / Procurement Agencies are not willing to own this responsibility.