Description:
Two benches of ITAT have how held that the activity of supply of gas is a contract for sale and not contract for work, therefore, no tax is deductible under section 194C in respect of the transportation charges paid by assessee to the supplier of gas.
Source:
1. www.tpcc.in
2. The Tax Referencer .Volume121. Issue No.4,26 Sept.2011, Page No.45.
Our comment:
Supply of gas is a contract for sale. TDS provisions are not applicable.