2014 (8) TMI 1030

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....resh bookings of the launched projects of big builders/ developers and was an authorized dealer/ agent/ broker of various dealers/ developers. The modus operandi of the assessee was that as and when a builder announces its project, the assessee used to underwrite the builders/ developers project and then in turn starts booking of the property through various sub-dealers/ agents/ brokers, as and when directed by itself. For the purpose of bookings, the assessee maintained offices at various locations and also opened temporary offices at the project sites of the developer. 2.1. The persons who managed and controlled the offices for the purposes of bookings were allowed sub-commissions instead of remuneration and similarly the sub-dealers/ ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ee to the third party was still commission, provisions of TDS as applicable in the case of commission, were applicable from the payments made by the assessee to the recipients. He did not accept the assessee's contention that it was in the nature of discount. He pointed out that discount could be given only by the seller of the goods and, therefore, the same could be given only by the builder. However, the assessee was merely a broker and he had neither developed the property nor was the owner of such property, hence not competent to offer any discount. 2.5. After detailed discussion, the assessing officer held that the provisions of section 194H were attracted and since the assessee failed to make the TDS in accordance with the said....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... for paying, on or after the 1st day of June, 2001, to a resident, any income by way of commission (not being insurance commission referred to in section 194D) or brokerage, shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of ten per cent: Provided that no deduction shall be made under this section in a case where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year to the account of, or to, the payee, does not exceed two thousan....