TDS on commission paid by MTNL/BSNL to owners of PCO under section 194-H of Income-tax Act – CBDT Clarifies
A number of representations have been received from BSNL/MTNL and field formations regarding raising of/pending demands for non-deduction of tax at source on commission payments to the franchisees/ PCO owners by MTNL and BSNL prior to 1/6/2007.
The matter was discussed by the Board recently and it has been decided that the demands raised against MTNL/BSNL on account of non-deduction of TDS u/s 194H on all such commission payments to franchisee/PCO owners etc. may not be enforced till the matter is sorted out by the Board.
CBDT Instruction No. 3/2009, CBDT., Dated: May 8, 2009