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2016 (10) TMI 1232 - AT - Income TaxTDS u/s 194G - non deduction of tds on commission paid to the sub agents - Held that:- The provisions contained in section 194G of the Act provides for deduction of TDS by any person who is responsible for paying to any person, who is stocking, distributing, purchasing or selling lottery tickets, any income by way of commission, remuneration or prize on such tickets, at the time of credit of such income to the account of the payee. Thus the requirement of deduction of tax will only arise when there is a payment of income by way of commission, remuneration or prize on lottery tickets In the present case, the assessee is not giving any commission to the sub agents as there is a sale being effected between the assessee and the sub agents and the assessee after transferring the lottery tickets to the sub agents has no control over the same. Moreover, it is not a case where the assessee is giving any remuneration or prize to the sub agents, in as much as the value of prize winning lottery tickets is claimed from the government agency supplying the lottery tickets to the assessee. The government agency after deduction of TDS credits the value to the account of the assessee who, thereafter, passes on the same to the sub agents. In the facts of the present case we find that the application of section 194G/194H of the Act was not warranted. - Decided in favour of assessee.
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