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2005 (6) TMI 21 - HC - Income TaxTDS - discount given on sale of stamp by the Treasury to the stamp vendor is outside the scope of TDS provisions under section 194H of the Act. Wherever the Legislature wanted to levy tax on trade discount, they specifically provided for the same which is clear from the provisions of section 194H of the Act which provides for deduction of tax on discount paid to lottery dealers in the form of commission. In the circumstances, discount paid to the stamp vendors is not intended to be covered by section 194H of the Act. These writ petitions are therefore allowed vacating the impugned instructions issued by the Income-tax Department for deduction of tax at source on discounts paid to stamp vendors with direction to the Treasury Officers to refund the amounts withheld from the petitioners and other stamp vendors under interim orders of this court, within three weeks from the date of production of copy of this judgment.
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