INCOME TAX ACT, 1961

Section 194H

Tax deduction at source-under section 194H - Discount given by assessee to its distributors on prepaid SIM Cards - -

Issue arose under consideration as to whether Tribunal erred in holding the discount given by assessee to its distributors on prepaid SIM Cards did not require deduction of tax under section 194H.Held: Tribunal noted the observations of AO that the discount allowed to the distributors by assessee was on account of principal to principal relationship and not that of principal to agent. Tribunal followed the decision of High Court in the case of Bharati Airtel Ltd. vs. Dy.CIT [(2014) 372 ITR 33 (Karn) : 2014 TaxPub(DT) 4369 (Karn-HC)] and held that sale of SIM cards/recharge coupons at discounted rate to the distributors was not commission and therefore not liable to deduct the TDS under section 194H.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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