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2021 (12) TMI 18 - HC - Income TaxTDS u/s 194D - Default u/s 201(1) - payment of insurance commission to its agents - assessee deducted TDS on the net amount of insurance commission after excluding the service tax component - AO opined that TDS was required to be deducted on the gross insurance commission including the service tax component as required u/s 194D - HELD THAT:- The obligation to deduct is on the person who is paying and the deduction to be made at the time of making such payment. Factually and admittedly no amount has been paid to the agents by respondent as a reimbursement of expenses incurred by agent in the foreign travel. Respondent had made arrangement for foreign travel for all the agents and paid expenses directly to those service providers. Therefore as no amount was paid to the agents by respondent, obligation to deduct income tax thereon at source also would not arise. We disagree with the view expressed by the Assessing Officer and concur with the view expressed by the CIT(A) as well as ITAT (though its reasons are different from our reasons).
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