Incentive paid by BSNL to its franchisee is a trade discount not commission liable to TDS

Brief of the case: ITAT held in ITO Vs General Manager Bharat Sanchar Nigam Ltd that the incentive offered by the BSNL to its franchisee was in the nature of trade discount not in the nature of commission because after the payment made by the franchisee to the BSNL all risks and rewards relate to the franchisee. There was principal to principal relation between the BSNL and franchisee because the franchisee paid the amount and collected the recharge coupon and after that recharge coupons become the property of franchisee and the obligation of the BSNL was only to the customer for the value of ...