Relief to Vi: No TDS Deductible under Income Tax Act on Payments Received by Distributors/Franchisees From Third Parties/Customers, Rules Calcutta HC

The Calcutta High Court ruled that distributors and franchisees receiving payments from third parties/customers are not liable for TDS under the Income Tax Act. This decision provides relief by clarifying that such payments do not constitute income in their hands. The court emphasized that these entities act as intermediaries, merely facilitating transactions between third parties and customers. Therefore, the payments received by them do not fall within the purview of TDS provisions. This ruling clarifies the applicability of TDS rules to distributors and franchisees in such scenarios.