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In the present case, however, the assessee is not a routing agency. It makes outright purchase of advertisement space and exercises exclusive control over such space with the right to either sell it to others or retain it for itself. The payments in the present case are also not made by an advertising agency to the print media. Rather, there is a transfer of space from BCCL to the assessee who in turn sells it to others. Before taking a decision on the applicability of TDS under section 194C on a contract, it would have to be examined whether the contract in question is a 'contract for work' or a 'contact for sale' and TDS shall be applicable only where it is a 'contract for work'." the contract in question was a contract for sale of space and was not contract for supply of goods. Therefore, the provisions of Section 194C are not applicable to the facts situation of the case.

Shanti Prime Publication Pvt. Ltd.

Sec. 194C of Income Tax Act, 1961—TDS —Main object in a contract of sale is the transfer of property and delivery of possession of the property, whereas the main object in a contract for work is not the transfer of the property, but it is one for work and labour, in the case of assessee, assessee company had entered into an agreement for bulk sale of advertising space with its' holding company on a principal to principal basis by transfer of rights therein and the assessee under the agreement makes purchase of advertisement space and exercises control over such space with the right to either sell it to other or retain it for itself, thus, it is a transfer of advertising space to the assessee who in turn sells it to others,therefore, aforesaid transaction can not be termed as supply of goods but is a contract for sale not covered under section 194C — Times VPL Limited vs. CIT [2020] 421 ITR 170 (KARN)

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