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2010 (8) TMI 691 - HC - Income TaxAssessee in default - TDS u/s 194H - whether section 194H is applicable for the "discount" given by the assessee to the distributors in the course of selling SIM cards and recharge coupons under the prepaid scheme against advance payment received from the distributors - Held that: distributor is only rendering services to the assessee and the distributor commits the assessee to the subscribers to whom the assessee is accountable under the service contract which is the subscriber connection arranged by the distributor for the assessee - The distributor undoubtedly charges over and above what is paid to the assessee and the only limitation is that the distributor cannot charge anything more than the MRP shown in the product namely, SIM card or recharge coupon - the distributor acts on behalf of the assessee for procuring and retaining customers and, therefore, the discount given is nothing but commission within the meaning of Explanation (i) on which tax is deductible under section 194H of the Act - discount paid to the distributors is for service rendered by them and the same amounts to "commission" within the meaning of that term contained under Explanation (i) to section 194H of the Act - Decided against the assessee
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