Discount for supply of Sim Cards is Commission for S. 194H TDS

Posted: 23 Sep 2010 09:25 AM PDT

The Assessee, a mobile cellular operator, carried on business through distributors, and offered the "post paid scheme" and the "pre-paid scheme" to its customers. The assessee paid charges to the distributors for services rendered. While the charges paid in respect of the "post paid services" was treated as "commission" and liable to TDS u/s 194H, payments made for services rendered under the "prepaid scheme" were treated as a sale of Sim Card at a discounted value and not as "commission". The...

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