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Pankaj Arora (Learner) (3134 Points)

10 December 2011

is income tax department not charge interest on demand raise u/s 156 after scrutiny ?

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chandni (C.A final) (48 Points)
Replied 10 December 2011

wel m not sure but i think they do charge interest after scrutiny

CA Sumit Bansal (CA) (75 Points)
Replied 10 December 2011

agree wid chandni

chandni (C.A final) (48 Points)
Replied 10 December 2011

hey does nyone knw abt the tds ques of income tax..............whether tds is deductible by airline agencies on parking n landing fees paid by them to Indian Airport Authority!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Chintan (Accounts and Finance Executive CS Executive Pursuing) (98 Points)
Replied 10 December 2011

I think no liability arises to deduct TDS

chandni (C.A final) (48 Points)
Replied 10 December 2011

why but airport authority does act as an intermediary???????????????????????

RAKESH (Almost CA) (2199 Points)
Replied 10 December 2011

@ chandni : Yes it is payable by the airline agencies to the authorities. and It is deducted U/s. 194I. It is payable only when the tyres touch the ground and not otherwise.

XYZ..... (-) (516 Points)
Replied 10 December 2011

Yes .It is deducted u/s 194I. Refer the case law CIT vs.. Japan Airlines Co. Ltd.(2010). I think this was asked in recent CA Final exam...............plz correct me if I m wrong.....................

C.A. Jignesh N. Mehta (C.A.) (1030 Points)
Replied 10 December 2011

What is the nature of landing and parking charges paid by an airline company to the Airports Authority of India and is tax required to be deducted at source in respect thereof?

CIT v. Japan Airlines Co. Ltd. (2010) 325 ITR 298 (Del.)

Relevant section: 194-I

On this issue, the Delhi High Court referred to the case of United Airlines v. CIT (2006) 287 ITR 281, wherein the issue arose as to whether landing and parking charges could be deemed as rent under section 194-I. The Court observed that rent as defined in the said provision had a wider meaning than “rent” in common parlance. It included any agreement or arrangement for use of land. The Court further observed that when the wheels of the aircraft coming into an airport touch the surface of the airfield, use of the land of the airport immediately begins. Similarly, for parking the aircraft in that airport, again, there is use of the land. Therefore, the landing and parking fee were definitely “rent” within the meaning of the provisions of section 194-I as they were payments for the use of the land of the airport.

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Shah Tarun (Student) (800 Points)
Replied 11 December 2011

Agree with Jignesh. .Very nice reply.

Raghunath Prasad (WORKING) (385 Points)
Replied 11 December 2011

Originally posted by : chandni
	hey does nyone knw abt the tds ques of income tax..............whether tds is deductible by airline agencies on parking n landing fees paid by them to Indian Airport Authority!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!