'A' is a purchaser who orders to purchase a product through website 'B'
'B' is a website which displayes 'C' ('C' means - flipkart,snapdeals,foodpanda, amazon,askmebazar, quicker, goibibo etc. such so many over 200 portals)
'D' are so many sellers who displays their products on website of 'C' and sell product to 'A' directly and gets payment from 'C' after deduction of their commission.
'A' orders to buy a product first go to website 'B' and takes a Coupan code from there and enters to website of 'C' where A' selects products and orders by making online payment. When this transaction is over 'B' raises a Service Charge bill to 'C' with charging 14% ST and gets payment after deduction of 10% TDS U/s194 H. 'B' out of this service charge revenue passes/pays some part of it to 'A'' as business promotion and due to the more value of theese tranactions this amount which 'A' gets known as CASHBACK is over 50000/-.'B' is paying this Cash Back to 'A' after deducting 10% TDS u/s 194 H.
My question is 'A' has not given any services to 'B' but getting payment of CASHBACK as commission which is actually an incentive or business promotion amount against purchases. Is it right to deduct TDS? Please advise us what advise be given for not to deducting TDS supported with judgements and applicable sections, so that 'B' could no be hold responsibe u/s 40 of IT Act for not deducting TDS to allow expenditure of paying CASHBACK in toto.
CAclubindia
