The assessee simply sells its products to dealers/distributors who, in turn, sell them to the end users. Therefore, there was no element of work as defined under clause(iv) of Explanation to Section 194C of the Act. Therefore, under no circumstances, S. 194C of the Act would be applicable to the discount/rebate. (AY. 2016-17, 2017-18)
ASUS India Pvt. Ltd. v. ACIT (2020) 208 TTJ 1 (Mum.)(Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Sales rebate-Discount-No element of work as defined under clause (iv) of Explanation to Section 194C of Act-Not liable to deduct tax at source-No disallowance can be made. [S. 194C, 194H]