IN THE COURT OF COMMISSIONER,
DEPARTMENT OF TRADE AND TAXES, GOVT OF N.C.T. OF DELHI, VYAPAR
BHAWAN, NEW DELHI
No.:148/CDVAT/2006 Date of
Order:
M/s. Garrison Engineer(P) ABHM,
Near HQ Chief Engineer,
Delhi Zone, Delhi Cantt.
New Delhi.
O R D E R
Present for the
Applicant : Sh.Sunil Handa, CA
Present for the
Department : Sh. Ashok Gupta, DR.
The above named
applicant has filed this application on 11.08.06 u/s 84 of the Delhi
Value Added Tax Act, 2004 (hereinafter referred to as the “said
Act”) and the questions put up before this Court for determination
under the aforesaid provision of law are as under:-
“Whether tax is to
be deducted at source on payment made to consultant for consultancy
rendered in the form of supply of architectural & structural
drawings/designs for civil, electrical, A.C. works etc. based on
department’s requirements or to be considered professional service
and no tax is to be deducted?”
2. The application
for determination has been made in the prescribed format DVAT-42 and
the requisite fee of Rs.500/- paid through Draft No.192218 dated
5.10.06
3. The applicant
has engaged M/s. STUP Consultant Pvt. Ltd. for supply of
architectural & structural designs/drawings for civil, electrical
work. Air Conditioning works, Horticultural works etc. has made
payment as per the contract agreement and deducted TDS @ 2% on the
payment made to the contractor. The tax so deducted at source has
been deposited with the Department of Trade & Taxes, Govt of NCT of
Delhi. The consultant has protested the deduction of TDS by stating
that the designs are tailor made to suit specific needs and various
parameters of the project and not a standard manufactured product.
They have further pleaded that their services are to be considered
professional services and cannot be covered as works contract. They
requested that TDS shall not be deducted. Hence, this application.
4. Sh. Singh who
appeared on behalf of the applicant has reiterated the ground taken
in this application and submitted written submissions along with
copies of the contract agreement.
5. The DR on the
other hand has submitted that the item which is a matter of
determination is not covered under the provisions of sub section (4)
of section 84 of DVAT Act, 2004. As such, the application for
determination is not maintainable before this court.
6. I have carefully
perused in detail the application filed u/s 84 of the said Act along
with the material on record and heard both the parties. After going
through the provisions of the section 84 of the said Act I am of the
considered view that the question which is a subject matter of the
determination is not covered under the section 84(4) of the said
Act. Hence, the application is not maintainable here in this Court
and is thus dismissed.
( Archna Arora )
Commissioner, T&T,
Delhi Copy for information and necessary action to :
1. The Applicant
2. The Addl.
Commissioner (Law & Judicial)
3. The Value Added
Tax Officer (Policy Branch)
4. Deptt. of Trade
and Taxes Bar Association
5. The Manager (EDP
Cell)
(with the direction
to upload the order on website)
6. Guard File
( Archna Arora )
Commissioner, T&T,
Delhi
