{"id":20971,"date":"2021-08-05T18:37:18","date_gmt":"2021-08-05T13:07:18","guid":{"rendered":"https:\/\/itatonline.org\/digest\/uber-india-systems-p-ltd-v-jcit-2021-188-itd-362-211-ttj-1-202-dtr-129-mum-trib\/"},"modified":"2021-08-05T18:37:18","modified_gmt":"2021-08-05T13:07:18","slug":"uber-india-systems-p-ltd-v-jcit-2021-188-itd-362-211-ttj-1-202-dtr-129-mum-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/uber-india-systems-p-ltd-v-jcit-2021-188-itd-362-211-ttj-1-202-dtr-129-mum-trib\/","title":{"rendered":"Uber India Systems (P) Ltd. v. JCIT (2021) 188 ITD 362 \/ 211 TTJ 1 \/ 202 DTR 129 (Mum.)(Trib.)"},"content":{"rendered":"

Assessee Company USIPL appointed by Uber B.V., under an Inter-company service agreement was providing support services viz to act as payment & collection service provider of Uber B.V. for a fixed monthly consideration. It was Uber B.V. who provided lead generation services to driver-partners who were interested in providing transport services to riders (users) through Uber App.<\/p>\n

A.O held the assessee company would be a \u201cperson responsible for paying\u201d within the meaning of Sec 194C r\/w s. 204, and thus was treated as an \u2018assessee in default\u2019, ignoring the observations made in the order u\/s 143(3), treating the assessee company as being engaged in business of providing marketing and support services to Uber B.V. and not as a transportation service provider, and passed Order u\/s 201\/201(1A).<\/p>\n

On appeal the Tribunal considered the following facts viz:<\/p>\n

    \n
  1. a) Role of assessee company is limited to act as a payment and collection service provider of Uber B.V.<\/li>\n
  2. b) The assessee company does not have any agreement with the driver-partner.<\/li>\n
  3. c) As the transportation service is provided by driver-partner to users directly, for which user is making the payment, so it is the user who is the person responsible for paying and nit the assessee.<\/li>\n
  4. d) Also in a situation where user makes direct cash payment to driver-partner the assessee is not even made aware and making them liable for deducting Tax would result in impossibility of performance.<\/li>\n<\/ol>\n

    Based on above facts and reasoning it was held that the provisions of section 194C are not applicable and no order could be passed against assessee u\/s. 201\/201(A).\u00a0 (AY. 2016-17 & 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"

    S. 194C : Deduction at source-Contractors-Person responsible for paying-It\u2019s the user who is person responsible for paying, and not the intermediary-Intermediary in the instant case is an \u2018aggregator\u2019 and not a service provider and hence cannot be treated as assessee in default. [S. 201(1), 201(IA), 204]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-20971","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-5sf","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=20971"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20971\/revisions"}],"predecessor-version":[{"id":20972,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20971\/revisions\/20972"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=20971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=20971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=20971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}