https://www.taxtmi.com/caselaws?id=763181 ITAT Chennai held that incentive payments to dealers under promotional schemes do not attract TDS under section 194H as no principal-agent relationship exists between the assessee and dealers. The risk and rewards of ownership transfer to dealers upon delivery, establishing a seller-buyer relationship. Following Supreme Court precedent in Bharti Cellular Limited, promotional payments to increase sales volume are not liable for TDS under section 194H. However, the tribunal confirmed disallowance under section 40(a)(ia) for EPF/ESI contributions made on behalf of contractors, ruling these constitute payments to contractors for their liabilities and require TDS under section 194C. en-us Thu, 14 Nov 2024 00:00:00 +0530 Fri, 13 Dec 2024 14:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763181 ITAT Chennai held that incentive payments to dealers under promotional schemes do not attract TDS under section 194H as no principal-agent relationship exists between the assessee and dealers. The risk and rewards of ownership transfer to dealers upon delivery, establishing a seller-buyer relationship. Following Supreme Court precedent in Bharti Cellular Limited, promotional payments to increase sales volume are not liable for TDS under section 194H. However, the tribunal confirmed disallowance under section 40(a)(ia) for EPF/ESI contributions made on behalf of contractors, ruling these constitute payments to contractors for their liabilities and require TDS under section 194C. Case-Laws Income Tax Thu, 14 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763181