Assessee providing post-paid and pre-paid telecommunication services through various channel partners (distributors) under agreements entered into between them. \u00a0Assessee sold its products, i.e., starter kits and pre-paid vouchers, to distributors in bulk against advance payments. As per the assessee, starter kits and recharge coupon vouchers were sold to its various distributors on principal-to-principal basis at a discounted price than MRP with agreed rider that no product would be sold at a price more than MRP. The AO took a view that discount, i.e., difference between MRP and selling price, to distributors amounted to payment of commission which was liable to TDS u\/s. 194H. Tribunal \u00a0held that, it was not a sale of goods but a case of providing telephone services and, hence, there could be no sale of goods from service provider i.e. assessee to its distributors so as to create a principal-to-principal relationship. Discount on pre-paid products offered by assessee was in nature of ‘commission’ which did attract S. 194H of the Act . (AY 2007- 08 to 2011 \u2013 12)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 194H : Deduction of tax at source -Trade discount \u2013 Discount offered is to be regarded as ‘commission’ -Liable to deduct tax at source .<\/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":[1],"tags":[],"class_list":["post-2141","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-yx","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/2141","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=2141"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/2141\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=2141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=2141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=2141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}