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2023 (3) TMI 1058 - CALCUTTA HIGH COURTTDS u/s 194H - trade discount allowed by the assessee to INS accredited Advertising Agent - Whether not in nature of Commission and therefore not subjected to TDS? - HELD THAT:- The substantial question of law which has been framed for consideration has been answered in favour of the respondent/assessee in several decisions. CBDT issued Circular being No.5 of 2016 dated 29th February, 2016 clarified by the Board that no TDS is attracted on payments made by television channels/newspaper companies to the advertising agency for booking or procuring of or canvassing for advertisements. It has been further clarified that the word ‘commission’ referred to Question No.27 of the Board’s Circular No.715 dated 8th August, 1995 does not refer to payments by media companies to advertising companies for booking of advertisements but to payment for engagement of models, artists, photographers, sportspersons, etc. and, therefore, is not relevant to the issue of TDS referred in this Circular. Thus, the legal position as understood by the CBDT is clearly in favour of the respondent/assessee. Tribunal correctly held that it is clear that there is no principal and agent relationship between the newspaper and the advertising agency. Thus, both on facts as well as in law, the respondent/assessee has to succeed and the revenue has to fail.
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