TDS deductible on Payment to dealers for providing services to customers in lieu of free service coupons

Mahindra & Mahindra Ltd. Vs DCIT (ITAT Mumbai) Payments made by the assessee to its dealers for providing free services in lieu of service coupons is not in the nature of any reimbursement of expenditure incurred by such dealers, and is in fact in the nature of payment of consideration pursuant to a contract, as per which the dealer provides such services to the ultimate customers. Accordingly, in our considered view the assessee was obligated to have deducted tax at source at the time of making of such payments towards service coupons to its dealers. FULL TEXT OF THE ITAT JUDGEMENT The pr...