Tribunal held that the discount extended to the prepaid distributors was in the nature of margin for such distribution of the right to prepaid services and such discount did not qualify as commission within the meaning of section\u00a0194H\u00a0. Thus, the assessee was not required to deduct tax under section\u00a0194H\u00a0on the prepaid SIM cards and hence, the assessee was not in default in terms of the provisions of section\u00a0201(1)\u00a0. With regard to the provisions of section\u00a0194J\u00a0in respect of roaming charges, the assessee was not required to deduct tax under section\u00a0194J\u00a0and consequently the assessee was not to be treated as an assessee in default under section\u00a0201(1)\u00a0. The roaming charges were not paid for rendering any managerial, technical or consultancy services and hence, did not fall under the category of fee for technical services. Therefore, the assessee was not required to deduct tax on such roaming charges under section\u00a0194J\u00a0. Once the assessee was treated as not in default under section\u00a0201(1)\u00a0, interest under section\u00a0201(1A)\u00a0was not required to be charged.( AY.2009-10 to 2012-13)<\/p>\n
\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" S. 194H : Deduction at source \u2013 Commission or brokerage – Fees for professional or technical services \u2013 Discount to prepaid cards to distributors \u2013 Principal to principal basis \u2013 Roaming arrangement with other distributors \u2013 Not liable to deduct tax at source under section 194H or under section 194J -Interest is not leviable [ S.194H , 201 (1) ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-14068","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3EU","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=14068"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14068\/revisions"}],"predecessor-version":[{"id":21616,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14068\/revisions\/21616"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=14068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=14068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=14068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}