BENGALURU: The Karnataka HC has recently upheld the verdict delivered by the Income Tax Appellate Tribunal years ago that TDS was not applicable for the consortium that supplied coaches to Bengaluru Metro since it was only a supply contract. The issue dates back to the financial year 2011-2012.
In February 2009, BEML and its consortium BRMM, comprising Mitsubhishi and Japan-based Melco along with the Korean rolling stock major Rotem, bagged a contract worth Rs 1,673 crore from BMRCL for supply of 150 coaches. “The judgment came on June 30, 2022, but the court copy was sent to us later,” said K K Chythanya, counsel of BMRCL.
“TDS of 10 per cent is deducted under Section 194 (J) of the IT Act. The IT Department had taken BMRCL to the Appellate Tribunal over the issue and BMRCL won the case there. The IT department filed against the verdict in the HC and BMRCL’s stand has been upheld. The judges gave the verdict,” he added.