https://www.taxtmi.com/caselaws?id=465542 Discounts and bonus/incentives allowed to stockists/distributors were examined for TDS under s.194H and consequent treatment as "assessee in default" under s.201(1). The Tribunal held that the distributors purchased goods and resold in their own right, with risks and rewards transferring on delivery under the distribution agreement; the reduction from MRP was thus a trade discount on sale, not "commission or brokerage" attracting s.194H, and no s.201(1) default arose on this count. Payments described as interest to medium and small enterprises were held to have an immediate nexus with delayed trade-payable settlement and not to constitute "interest" under s.2(28A) for s.194A purposes; therefore, no TDS obligation arose and no default could be fastened. The revenue's appeals were dismissed. en-us Mon, 21 Nov 2022 00:00:00 +0530 Sat, 27 Dec 2025 12:31:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465542 Discounts and bonus/incentives allowed to stockists/distributors were examined for TDS under s.194H and consequent treatment as "assessee in default" under s.201(1). The Tribunal held that the distributors purchased goods and resold in their own right, with risks and rewards transferring on delivery under the distribution agreement; the reduction from MRP was thus a trade discount on sale, not "commission or brokerage" attracting s.194H, and no s.201(1) default arose on this count. Payments described as interest to medium and small enterprises were held to have an immediate nexus with delayed trade-payable settlement and not to constitute "interest" under s.2(28A) for s.194A purposes; therefore, no TDS obligation arose and no default could be fastened. The revenue's appeals were dismissed. Case-Laws Income Tax Mon, 21 Nov 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465542