Discount by Cellular companies to distributors on SIM Cards and Recharge Coupons sales is commission’ and TDs is deductible

Court :Kerala High Court Citation :Vodafone Essar Cellular Limited Vs. ACIT [2010-TIOL-655-HC-Kerala-IT] Brief  – Discount offered by Cellular companies to distributors on SIM Cards and Recharge Coupons is in the nature of ‘commission’ on which tax is required to be withheld under section 194H of the Act. Recently, the Kerala High Court in the case of Vodafone Essar Cellular Limited v. ACIT [2010-TIOL-655-HC-Kerala-IT] held that the discount given by the taxpayer at the time of sale of SIM Cards or Recharge coupons to the distributors is commission for the services rendered to the t...