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TCS on lease of canteen/comfort station/STD Booth/Fancy Shop

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This query is : Resolved

Sivaraman A R (Querist)
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10 January 2010
One of my office client, District Tourism Promotion Council, an autonomous body working under Department of Tourism is leasing fancy shop, STD booths, Comfort station, canteen to individuals. Is TCS to be paid on under section 206C to the IT department.

Under 206C,a person who grants a Lease or License or Contracts for Parking Lot , Toll Plaza or Mining/Quarrying agreement is responsible to collect tax at source. Nothing is mentioned in 206C about canteen or comfort station etc. Notice from Income Tax department says that you have not deducted TCS.

What may be the contention of IT department? Is DTPC liable for TCS?

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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11 January 2010 you are correct these items & each & every items are not for TCS, give a submission of the same to
ITO

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