2014 (5) TMI 1133 - SCH - Income Tax

TDS u/s 194H - Trade discount provided by newspaper publishers to advertising agencies under Rules and regulations of Indian Newspaper Society - Held that - Special Leave Petition is dismissed. It is clear that advertising agency has never been appointed as agent of the petitioner. The relationship between the assessee and the advertising agency in accordance with the INS Rules is that of a principal to principal because (a) the assessee has no control over the advertising agency, (b) the advertising agency is responsible for payment even if the advertiser has not paid the advertising agency, (c) the advertising agencies are rendering service to the advertisers/ customers & other terms. Therefore, trade discount provided cannot be termed as Commission. See HC ref -2012 (5) TMI 488 - ALLAHABAD HIGH COURT