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Section 40(ia)

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Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2013 I am a dealer of a mobile company. According to company's instructions I pass on schemes to retailers ( free recharge coupons on certain purchase of coupons by retailers). The ITO disallowing my above expenditure debited to P/L account on the ground that TDS has not been deducted on the cost of said free coupons since this expenditure is nothing but commission paid. Is the ITO right? If no please guide me and give me some case law.

Pradeep Agarwal

Pradeep Agarwal (Expert)

07 May 2013 You mean to say you received coupons free of cost and sold it to cusstomer at a certain price??

Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2013 Mobile company credited my account by credit note on scheme to be given to retailers and deducted TDS. I paased on the same amount to retailers without deducting TDS.Assessing officer objecting that I have not deducted TDS from retailers like in case of contractor and sub contractor.I have taken ground that since it was not my expenditure, I was not liable for deducting TDS. But A.O. is not convinced. Please give me guidance and some case law.

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