Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Income Tax - Highlights / Catch Notes

Home Highlights November 2024 Year 2024 This

Allowance of Tax Deducted at Source (TDS) claimed by a "Kaccha ...


Kaccha Aaratiya's TDS credit eligibility on commission & interest income upheld for agricultural produce sales.

Case Laws     Income Tax

November 6, 2024

Allowance of Tax Deducted at Source (TDS) claimed by a "Kaccha Aaratiya" (commission agent) engaged in selling agricultural produce on behalf of farmers. The key points are: The assessee, a Kaccha Aaratiya, is entitled to claim TDS credit u/ss 194A (interest income) and 194H (commission income) as the entire income on which TDS was deducted is duly offered for taxation. The disallowance of TDS amounting to Rs. 179,551 is unjustified. Regarding TDS u/s 194Q (purchase of goods), the assessee is eligible to claim credit as they merely facilitate the sale between farmers and principal buyers, earning only commission. The invoices and sale documents establish that the assessee has no control or margin in the sale and earns only commission. As per CBDT Circular 452 (1986), for Kaccha Arahitias, turnover excludes sales on behalf of principals, and only commission income is considered for tax purposes u/s 44AB. TDS deducted u/s 194Q by principal buyers cannot be denied by invoking Rule 37BA read with Section 199, as the sales facilitated are not the assessee's turnover, and the commission income is.

View Source

 


 

You may also like:

  1. The assessee, a licensed commission agent in the Agricultural Market Committee Yard, Guntur, claimed credit for the entire amount deducted as tax at source u/s 194Q from...

  2. Tax deducted at source (TDS) credit was denied in the intimation u/s 143(1) to the assessee. The Commissioner of Income Tax (Appeals) upheld the Centralized Processing...

  3. Credit of TDS - income earned by Late assessee for services rendered by him to the two companies before his death - in the return of income filed by the legal...

  4. Claiming TDS credit whereas interest income was not recognized following cash basis of accounting - TDS amount deserves to be treated as income - but tds credit cannot...

  5. Credit of TDS - consideration received for offshore supply of rolling stock, when no corresponding income has been offered for taxation by the assessee - The ITAT cited...

  6. The Appellate Tribunal addressed two issues regarding TDS credit. Firstly, the Tribunal emphasized that income and TDS must align in any assessment year when income is...

  7. TDS on interest arising from Motor Accidents Claim - Validity of the order of the Motor Accidents Claims Tribunal issuing directions to refund by the Insurance Company...

  8. Commission income belonged to the HUF or assessee - Referring to TDS Certificate issued by Ajnara India Ltd. showing TDS on commission paid to HUF of the assessee and...

  9. The Income Tax Settlement Commission passed an order charging interest u/ss 234A, 234B, and 234C of the Income Tax Act. The petitioners challenged the order's...

  10. Denial of TDS credit - Credit deferred to next year - To rest the adjudication, it suffice to voice that, the combined reading of Section 199(3) r.w. Rule 37BA(3) makes...

  11. Tax Credit Entitlement - Credit of TDS if deductor failed to deposit the TDS to the Government

  12. Revenue authorities cannot restrict tax deducted at source (TDS) credit based on assessee's original income tax return. When refund arises from appellate order,...

  13. Disallowance of commission paid to foreign agents - The Tribunal upheld the disallowance of commission expenses to both domestic and non-resident companies due to the...

  14. Input Tax Credit - Eligibility for Service Tax credit - commission paid to its directors, as per the company’s board resolution - it is clear that payment made to...

  15. TDS credit - AO did not allow the TDS credit on the ground that the corresponding income of this TDS has not been offered to tax by the assessee as it was not received...

 

Quick Updates:Latest Updates