TDS for STAMP VENDORS

Last updated: 29 August 2007

Court :
High Court

Brief :
The discount given to the 'stamp vendors' is neither 'brokarage nor 'commission'. Hence TDS provisions are not applicable

Citation :
Kerala State Stamp Vendors Association Vs Office of The Accountant General and Others

Deduction of tax at source u/s 194H Kerala State Stamp Vendors Association Vs. Office of the Accountant General and Others (2006) 282 ITR 7 (Ker) Case Fact: Whether the discounts given to stamp vendors by the State Government are subject to tax deduction at source u/s 194H? Decision: Held by the Hon"ble Court that the discount given to the purchaser of stamp paper is not "commission" or "brokerage" paid for services in the course of trading of goods and the stamp vendors cannot be treated as "agents" of the Government to sell the stamp papers, hence the provision of section 194H will not be applicable.