Case details: Dy. Commissioner of … Continue reading “Uber EATS follows Uber App model; Uber India not liable under Sec 194C: ITAT”
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Case details: Dy. Commissioner of Income Tax (OSD) Vs. Uber India Systems Pvt. Ltd. – [2023] 150 taxmann.com 39 (Mumbai – Trib.)[26-04-2023]
Judiciary and Counsel Details
Sandeep Singh Karhail, Judicial Member and Prashant Maharishi, Accountant Member.
Hiten Chande for the Assessee.
Ankush Kapoor for the Revenue.
Facts of the Case
For transportation services, Uber India was involved in various tasks such as recruitment and training of drivers, their police verification, collecting money from the passengers for the ride, collecting the commission and making payment to the drivers for the ride etc. It was carried out using the Uber App.
For Food Delivery Services, Uber India, through its Uber EATS application, provides a platform that connects and acts as a “Three-sided marketplace,” i.e., a Courier Partner, a Restaurant Owner, and a Customer with the Uber EATS platform at its center.
A TDS verification survey was conducted by the Assessing Officer (AO) and assessee was treated as assessee-in-default for non-deduction tax at source (TDS) under section 194C while making payment to drivers, restaurant partners and courier partners.
On appeal, the CIT(A) reversed the AO’s order, and the matter reached the Mumbai Tribunal.
ITAT Held
The Tribunal held that the issue arising in the present appeal was recurring in nature and had been decided by the coordinate bench of the Tribunal wherein it was held that Uber India could not be held as a person responsible for payment for the purpose of Section 194C.
This is because when cash is directly paid by the rider to the Driver, then Uber India isn’t treated as person responsible for payment. Therefore, how the very same Uber India could be treated as a person responsible for payment when the rider decides to make payments through digital means.
In the year under consideration, the assessee provided taxi and food delivery services in India through its mobile application. Uber EATS is a food delivery App that on a similar pattern as Uber App. Uber EATS is a Restaurant Aggregator platform akin to Uber App being a ride-sharing platform.
Thus, respectfully following the orders passed by the coordinate bench of the Tribunal in the assessee’s own case, the appeal was dismissed and decided in the favour of assessee.
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