Tds applicability on turn over discount

XYZ, a goods manufacturer and suplier company has aggred to pay to his distributor  turnover discount (post-sales) if distributor achieves targets as decided by both(Turn over discount is calculated on the basis of certain percentage sales made by his distributor's) . Thereafter, Credit note is issued by suplier for this turnover discount. My question is that is it subject to TDS?