No TDS on discount to pre-paid mobile service distributors

Vodafone Idea Ltd. Vs ITO (ITAT Delhi)

Conclusion: Discount offered on some of the prepaid mobile services did not partake the character of commission under Section 194H and hence there was no obligation to withhold tax on such discounts on pre­paid services.

Held: Assessee-company did deduct tax at source on discount extended to its pre-paid distributors on distribution of pre-paid services. As per TDS officer the relationship between assessee and the pre-paid distributors was not that of ‘Principal to Princi

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