Case Law Analysis
|Income Tax Appellate Tribunal
Section 194H | Pharma Stockist Trade Margins Are Not Commission, But Trading Profit: ITAT Mumbai
ITAT Mumbai rules that discounts and margins earned by pharmaceutical distributors on resale are trading income, not commission, exempting them from TDS under Section 194H. This clarifies a widespread industry practice and shields distributors from wrongful TDS demands, impacting thousands of pharma supply chain entities nationwide.