Mobile Service Providers Not Required to Deduct Tax on Distributor Discounts, Court Rules Principal-to-Principal Relationship.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....TDS u/s 194H - assessee is a cellular mobile service providers - Aligning with the Supreme Court's judgment, the Gujarat High Court ruled in favor of the appellant, stating that the discounts given to distributors are not commissions and that the relationship between the parties is of principal to principal. Consequently, the appellant is not required to deduct tax at source under Section 194H of the Income Tax Act concerning the discounts offered to distributors.....