#Section 194C

The ITAT Delhi has ruled that Common Area Maintenance charges collected by mall owners from tenants constitute service payments under Section 194C, not rent under Section 194I, reversing the TDS demand at 10%. This clarifies a critical distinction for commercial property managers, mall operators, and deductors who must now apply 2% TDS on such service fees instead of 10% on rent, reducing compliance risk and tax liability.

ITAT holds that TDS under Sections 194C and 194J does not arise if aggregate payments fall below statutory thresholds or exemption conditions are met, clarifying compliance obligations for traders.