https://www.taxtmi.com/forum/issue?id=3327 Commission is remuneration to an agent for services (typically a percentage of transactions) and requires a principal agent relationship; trade discount is a price reduction in a sale between principals. Therefore, statutory TDS provisions applicable to commission do not apply to ordinary trade discounts absent an agency element. Courts have applied this distinction in tax and excise valuation, and commission may attract service tax while trade discounts do not attract VAT/CST. en-us Sat, 27 Aug 2011 13:12:23 +0530 Thu, 23 Jan 2025 15:58:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=3327 Commission is remuneration to an agent for services (typically a percentage of transactions) and requires a principal agent relationship; trade discount is a price reduction in a sale between principals. Therefore, statutory TDS provisions applicable to commission do not apply to ordinary trade discounts absent an agency element. Courts have applied this distinction in tax and excise valuation, and commission may attract service tax while trade discounts do not attract VAT/CST. Discussion-Forum Income Tax Sat, 27 Aug 2011 13:12:23 +0530 https://www.taxtmi.com/forum/issue?id=3327