"Commission" Or "Brokerage" - Definition / Legal Terminology - Income Tax

Explanation (i) - For the purposes of section 194H of the Income tax Act 1961- Commission Or Brokerage includes- Any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or; in relation to any transaction relating to any asset, valuable article or thing, not being securities; In Bharti Cellular Ltd. (Now Bharti Airtel Ltd.) Vs Assit. [ CIT- 2024 (3) TMI 41 - SUPREME COURT] .........assessees would not be under a legal obligation to deduct tax at source on the income/profit component in the payments received by the distributors/franchisees from the third parties/customers, or while selling/transferring the pre-paid coupons or starter-kits to the distributors. Section 194-H of the Act is not applicable to the facts and circumstances of this case.