Recharge coupon given by Tata Sky to its distributors not liable for TDS: ITAT Mumbai

Recharge coupon given by Tata Sky to its distributors not liable for TDS: ITAT Mumbai | ITAT Mumbai has adjudged in matter of TATA Sky Ltd. that when Recharge coupon vouchers are given by Tata Sky Ltd to its distributorsat a discounted rate, the same could not be considered as commission and,hence, not liable for deduction of tax at source under provisions of section 194H. Also the the provision of service of installation of set top box and dish antenna at the customer's premise is not a technical service and assessee is not liable to deduct TDS under provisions of Section 194J of Income Tax Act. But TDS would be deducted as per provisions of Section 194C of Income Tax Act.

Recharge coupon given by Tata Sky to its distributors not liable for TDS: ITAT Mumbai

The Extract of judgement is given below for referance : 54. Upon careful consideration we find ourselves in agreement with the finding of the ld.CIT(A), which is also in consonance with the ITAT decision as mentioned above. Hence, we uphold the order of ld.CIT(A) on this issue. (iii) No liability on deductor to pay tax when tax is already paid by deductee: 55. On this issue the ld. CIT(A) has granted some relief to the assessee on the issue of TDS deduction u/s. 194H on discount and incentive on sale of STBs and RCVs on the ground that the recipients would have paid the applicable tax on the respective taxable income. Hence, in view of the decision of the Hon'ble Apex Court decision in the case of Coca Cola Expt. Corpn. Vs. ITO [1998] 231 ITR 200 (SC) the taxes cannot be recovered from the assessee. 56. In view of our adjudication in assessee's appeal that the assessee is not liable for tax deduction at source under section 194 H, adjudication of this ground is now only of academic interest, hence we are not engaging into the same. Tata Sky Limited 57. In the result, the assessee's appeal is allowed and the Revenue's appeal stands dismissed. Click here to download the complete Judgement