Amount Retention by Advertisement Agencies on Principal-Principal basis is Trade Discount, No TDS Obligation u/s 194H: Delhi HC [Read Order]

Amount Retention by Advertisement Agencies - Principal Principal basis is Trade Discount - TDS Obligation - Delhi HC - TAXSCAN

In a recent verdict, the Delhi High Court determined that the amount retained back by advertising agencies from the assessee, following a principal-to-principal arrangement, qualifies as a trade discount rather than a commission. Consequently, it does not incur Tax Deduction at Source (TDS) obligations as per Section 194H of the Income Tax Act, 1961. The…

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