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2017 (1) TMI 309 - HC - Income TaxTDS u/s 194H - non deduction of TDS to milk societies from whom milk was purchased in lieu of services rendered by them in the form of collection of milk from the cattle owners and supply of the same to the assessee - Held that:- Assessee’s transaction with distributor is sale. The risk and reward is with the distributor. The transaction is principal to principal basis. The distributor is not the agent of the assessee. From the side of assessee, no amount has been paid in form of commission or brokerage and the case laws referred by the assessee are squarely applicable. No rendering of any services and the payment is not made for any managerial services Supply of milk and milk products by assessee to the distributors was a sale agreement on principal to principal basis not liable for deduction of tax at source u/s 194H. See Principal Commissioner of Income Tax vs. Sikar & Jhunjhunu Zila Dugdh Utpadak Sahakari Sandh Ltd [2017 (1) TMI 242 - RAJASTHAN HIGH COURT] - Decided in favour of assessee
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