TaxTMI 
TaxTMI 
2008 (3) TMI 686
X X X X Extracts X X X X
X X X X Extracts X X X X
....TDS return on Form No. 26-C and the same was selected for scrutiny by the Assessing Officer. During the course of the proceedings, it was seen as per the details and copies of Ledger Account that the assessed had shown expenses of Rs. 87,27,705/- as commission under the head "Salary Expenses". Out of these expenses, a sum of Rs. 62,60,705/- was paid to M/s. PEC Ltd, Rs. 1,64,000/- to M/s. Bhura Export Ltd. and Rs. 23,03,000/- to M/s. Ayusa International. The assessed had submitted documents as far as M/s. Bhura Export Ltd. and M/s. Ayusa International were concerned but no agency agreement with M/s. PEC Ltd. was filed. The assessed explained that commission was paid to M/s. PEC Ltd. for export of wheat. The Assessing Officer asked the asses....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sed that the assessed had paid commission to M/s. PEC Ltd. which was exempt from TDS deduction and M/s. PEC Ltd. had transferred a simple contract of supplies to the assessed against the payment and M/s. PEC Ltd. was not rendering any kind of professional/technical services. 6. Relevant clauses of the agreement dated 10th January, 2001 entered between M/s. PEC Limited and the assessed has been reproduced by the Tribunal in the impugned order. 7. Section 194H of the Act defines the expression "commission" which includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of go....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Agent. Clause 6 provides that Foreign L/C shall be transferred in favor of SIL and M/s.PEC's service charge shall be US$ 1/- PMT Nett of Bill of lading quantity. It is clear from the said clause that M/s. PEC had transferred its wheat export L/Cs in favor of the assessed for execution of the wheat export and M/s. PEC charged commission for the export. Therefore, it can be said that M/s. PEC Ltd. transferred foreign buyers L/Cs in favor of the assessed against commission charges. 10. Further, perusal of the agreement dated 10.1.01 shows that M/s. PEC Ltd. had signed a contract with foreign buyer for supply of wheat and the assessed agreed to assist M/s. PEC in exporting wheat and the M/s. PEC transferred foreign buyers' L/C in fav....