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2018 (5) TMI 703 - AT - Income TaxTDS u/s 194H - discounts allowed to the distributors on bulk sale of starter kits and recharge vouchers (RCVs) - tds liability - assessee in default - transaction on principal–to–principal basis or on principal-to-agent basis - Held that:- The transaction relating to commission is agreed between the assessee and the channel partner/distributor, but the assessee has not been able to address as to for which segment of business, both the parties agreed to pay and receive commission. In view of what has been discussed above, and respectfully following the decision of Idea Cellular Ltd. (2010 (2) TMI 24 - DELHI HIGH COURT)held the discounts allowed on Starter Kits liable to TDS and since the assessee failed to deduct the tax at source, held the assessee in default on this count, determining the total liability and interest thereon at ₹ 2,15,45,233/- u/s. 194H - Decided against assessee TDS u/s 194J - Non-deducting of TDS on payment of IUC - Held that:- Keeping in view the similar nature of charges, i.e., roaming charges paid, this Bench of Tribunal in the case of Bharat Sanchar Nigam Ltd. vs. Addl. CIT (2017 (10) TMI 1093 - ITAT DELHI) the issue under consideration has been decided in favour of the assessee. The provisions of roaming services do not require any human intervention and therefore, the payment of roaming charges does not fall under the net of TDS provisions u/s. 194J of the Act. - Decided in favour of assessee.
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