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of <h1>SC rules bulk purchase discounts to stamp vendors are cash discounts, not commission, so no TDS under Section 194H applies</h1> The SC held that the discount of 0.50% to 4% given to stamp vendors for bulk purchase is a cash discount and constitutes a sale transaction. Consequently, ... Non deduction of TDS - commission or brokerage to the persons carrying on the business as 'stamp vendors' - Held that:- As satisfying with the decisions taken in assessee's own case in [2002 (6) TMI 32 - GUJARAT HIGH COURT] that 0.50% to 4% discount given to the Stamp Vendors is for purchasing the stamps in bulk quantity and the said discount is in the nature of cash discount, thus concluding that the impugned transaction is a sale and consequently, Section 194H has no application - in favour of assessee. The Supreme Court ruled that discounts given to stamp vendors are in the nature of cash discounts for bulk purchases, making the transaction a sale. Therefore, Section 194H of the Income Tax Act, 1961, does not apply. The civil appeal by the Department was dismissed with no costs.
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