| COURT: | ITAT Delhi |
| CORAM: | Amit Shukla (JM), O. P. Kant (AM) |
| SECTION(S): | 194-H, 263, 40(a)(ia) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | principal-agent relationship, Revision u/s 263, TDS disallowance |
| COUNSEL: | Prakash Chand Yadav |
| DATE: | August 13, 2018 (Date of pronouncement) |
| DATE: | September 15, 2018 (Date of publication) |
| AY: | 2009-10 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 194-H TDS: The law in Idea Cellular 325 ITR 148 (Del) that there is a principal-agent relationship between the telecom company and the dealers does not mean that a similar relationship can be inferred between the dealers and the sub-dealers. The incentive paid by the dealers to sub-dealers cannot be equated with commission as stipulated u/s194H and so there is no requirement for deducting TDS | |
There is no agency agreement between the assessee and his dealers/sub-dealers. The agency relationship between the assessee and the cellular operators cannot be inferred or presumed in the transaction between the assessee and his sub-dealers. The reason being the SIM cards, vouchers belonged to the cellular operators/cellular entities and these cellular operators/telecom entities ensure that payment is received in respect of those prepaid vouchers and SIM cards which are sold to the subscribers and unsold SIM cards are returned back to them and even if such SIM cards are returned, then these cellular/telecom entities are required to be made payment against them and the SIM card stocked with the distributors are the property of service provider, i.e., the telecom/cellular entities
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