Income Tax - Highlights / Catch Notes

The Delhi High Court addressed a case involving TDS u/s 194H for ...

HC held that TDS u/s 194H not applicable to transactions between appellant and distributors of SIM. Relationship is not that of agent but principal-principal.

Case Laws Income Tax

May 23, 2024

The Delhi High Court addressed a case involving TDS u/s 194H for non-deduction of TDS on transactions between the Appellant and distributors regarding the sale of SIM cards/Recharge Vouchers. The key issue was determining whether the relationship between the Appellant and distributors was that of principal and agent or principal and principal. The court referred to the Supreme Court decision in Bharti Cellular Limited, emphasizing that the term "agent" involves a specific legal relationship where one party has the power to affect the legal position of the principal through contracts or property disposition. The court held that the Appellant was not obligated to deduct tax at source on certain payments received by distributors, and Section 194-H was deemed inapplicable to the case. Consequently, the appeals by the cellular mobile service providers were allowed, overturning the judgments of the High Courts of Delhi and Calcutta. The appellant was not considered an assessee in default.

View Source

← Previous Next →

The Delhi High Court addressed a case involving TDS u/s 194H for ...

HC held that TDS u/s 194H not applicable to transactions between appellant and distributors of SIM. Relationship is not that of agent but principal-principal.

Case Laws Income Tax

May 23, 2024

You may also like:

TDS u/s 194H - sale of SIM cards - when the right to service can be sold then the relationship between the assessee and the distributor would be that of principal and...

TDS u/s 194H - commission payment to dealers - commission payment to dealers for distribution of SIM cards and recharge coupons of telecom service providers - whether...

TDS on the activity of super stockist of Chemists & Druggists - Principal to Principal relationship or Principal to agent relationship

TDS u/s 194H - Legibility of cellular mobile telephone service providers to deduct TDS on commission payable to franchisees/ distributors. - nature of relationship...

TDS u/s 195 - withhold tax on the payments made to the MRI company - assessee contended that it is acting as a collection agent on its behalf - Neither the assessee nor...

Scope of principal and agent relationship under Schedule I of CGST Act, 2017 in the context of del-credre agent.

Scope of principal and agent relationship under Schedule I of CGST Act, 2017 in the context of del-credere agent (DCA) - CBIC clarifies three issues.

TDS u/s 194H - Arrangements between the assessee and the stockiest for sale of goods is in the nature of principal to principal basis, but not in the nature of principal...

PE in India or not - Reseller Agreement does not create a principal-agent relationship between the Applicant and the Reseller - their relationship is on a...

Liability to deduct tds u/s 194H - commission or discount - sale of SIM cards / pre-paid talk time - What has been effected by way of these sale transactions is sale of...

Real estate agent service - contract between parties is of principal to principal relationship or agent to principal - There is no consideration defined and/or provided...

TDS u/s 194H - discount given by the assessee to its distributors on prepaid SIM Cards - When the transaction was between two persons on principal to principal basis,...

TDS u/s 194H - The sale of prepaid sim cards and RCVs by the assessee to the distributors are on principal–to–principal basis, hence, outside the ambit of section 194H...

TDS u/s 194H - Whether sale of recharge vouchers and prepaid vouchers and prepaid cards to the sole distributors does not establish Principal-Agent relationship liable...

TDS u/s 194H - whether expenditure towards “Authority to Guarantee charges” falls within the ambit of section 194H or not?- Held no - The requirement of an agent and...

Quick Updates: