The Supreme Court in the case of Singapore Airlines Ltd. v. CIT has held that provisions of Tax Deduction at Source (‘TDS’) under Section 194H of the Income Tax Act, 1961 would apply in case of commission paid by indirect mode of payment. The Court in this judgement dated 14...

The Supreme Court in the case of Singapore Airlines Ltd. v. CIT has held that provisions of Tax Deduction at Source (‘TDS’) under Section 194H of the Income Tax Act, 1961 would apply in case of commission paid by indirect mode of payment. The Court in this judgement dated 14 November 2022 observed that the word ‘commission’ is to be interpreted expansively, inclusive of both direct and indirect modes of payments.

Facts:

Supreme Court Judgement:

[1] Director General of Civil Aviation

[2] Singapore Airlines Ltd., KLM Royal Dutch Airlines and British Airways PLC

[3] Introduced by the Finance Act, 2001