Classification of imported salvaged shaft pieces as ship parts confirmed, reassessment time-barred and appeal allowed restoring original classificatio...
Scope of intermediary status for data hosting services: tribunal finds provider not intermediary, services exported and not taxable, limited remand on...
CENVAT credit availability after omission of Rule 12B in textiles confirmed; late addendum to SCN introducing new grounds held time-barred and invalid...
Export of Wheat Flour and related products subject to online allocation, eligibility criteria, non-transferable six-month authorisations and reporting...
The note addresses TDS obligations where payments calculated as fixed percentages of net sales were treated as reimbursements; it states that such payments lacked bills or vouchers and were contractual consideration for services (advertising, sales promotion, handling, storage). The legal principle applied is that genuine reimbursements must correspond to verifiable post-facto expenses supported by documentation, whereas fixed-percentage payments that are contractual fall within the TDS charging provisions and require deduction at payment or credit. Consequently, failure to deduct justified disallowance under the relevant tax disallowance provision.
The note addresses TDS obligations where payments calculated as fixed percentages of net sales were treated as reimbursements; it states that such payments lacked bills or vouchers and were contractual consideration for services (advertising, sales promotion, handling, storage). The legal principle applied is that genuine reimbursements must correspond to verifiable post-facto expenses supported by documentation, whereas fixed-percentage payments that are contractual fall within the TDS charging provisions and require deduction at payment or credit. Consequently, failure to deduct justified disallowance under the relevant tax disallowance provision.
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