The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has held that Tata Teleservices is not required to deduct TDS for the sale of recharge voucher coupons and starter kits to its channel partners. The assessee company is engaged in the business of providing telecommunication services across the country. In the course of the telecommunication services business, the assessee sells Recharge Coupon Vouchers (RCV) and starter kits to its channel partners for onward sale to the retailer and, thereafter, to the final customers. While concluding the assessment proceedings against the assessee, the Assessing Officer held that these payments are in the nature of commission for which, TDS under section 194H shall be deducted. Accordingly, the Assessing Officer proceeded to raise a demand on account of non-deduction of tax at source and also levied consequential interest U/s 201(1A) of the Act.
Source Taxscan
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