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For academic interest u can argue,but think practically from the angle of deductee.

Sorry Salil I cudnt get you...I wanted to know whether 194C will apply or 194H ?
 

i think that 194H will apply bcoz agency major income would always include commission and they are formed for that purpose only so therefore it falls under 194H..

this is my view, if i am wrong pls correct me..

see the differance in rates of deduction-

2% and 10%

As it is seen if u r saying like that u r right.But the deductee would suffer a higher deduction at a time he could have got away with alower deduction.

sorry for my earlier reply if the second company is invoicing in its own name then in that case it would be a contract. (getting orders processing them and broadcasting) therefore 194C would apply. If incase it is invoicing in the principle name and then getting commission for the services rendered them in that case it would be 194H. if i am wrong even now.. pls correct me..

Thanks guys for ur kind consideration........