Dismissing the appeal of the revenue the Court held that the contract was for rendering services and commission was paid by assessee to it’s distributors for rendering of such services in which event relationship between assessee and it’s distributors was that of ‘principal and agent’ and provisions of S. 194H would automatically came into play. Mere fact that assessee was only recipient and had not paid any amount to distributor would not make difference. (AY. 2007-08 to 2009-10, 2010-2011)
Tata Teleservices Ltd. v. DCIT (2018) 163 DTR 179 / 191 TTJ 294 (Hyd.)(Trib.) b
S. 194H : Deduction at source–Commission or brokerage–Cash discount-Provision is applicable in respect of amounts paid to agents in connection with sale of SIM cards and other services- Mere fact that assessee was only a recipient and had not paid any amount to distributor would not make a difference. [S. 201(1), 201(IA)]