https://www.taxtmi.com/caselaws?id=460841 The ITAT Delhi held that Section 194H TDS provisions do not apply to discount/margins granted on SIM cards/recharge vouchers/talk time sales. Following the SC decision in Bharti Cellular Ltd., the tribunal determined that distributors/franchisees are not agents within the meaning of Section 194H, as they lack power to affect the principal's legal position through contracts or property disposition. The relationship differs from typical agent-principal arrangements. Cellular service providers are not obligated to deduct TDS on income/profit components paid to distributors by third parties or when selling prepaid coupons/starter-kits. Appeal allowed in favor of assessee. en-us Wed, 05 Jun 2024 00:00:00 +0530 Mon, 24 Feb 2025 18:57:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460841 The ITAT Delhi held that Section 194H TDS provisions do not apply to discount/margins granted on SIM cards/recharge vouchers/talk time sales. Following the SC decision in Bharti Cellular Ltd., the tribunal determined that distributors/franchisees are not agents within the meaning of Section 194H, as they lack power to affect the principal's legal position through contracts or property disposition. The relationship differs from typical agent-principal arrangements. Cellular service providers are not obligated to deduct TDS on income/profit components paid to distributors by third parties or when selling prepaid coupons/starter-kits. Appeal allowed in favor of assessee. Case-Laws Income Tax Wed, 05 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460841