S. 194H TDS not applicable on Charges for use of Swipe Machine paid to banks

Assessee was engaged in the business of trading in ready made garments. A letter was received from the Assessing Officer, TDS Circle Mumbai that the respondent- assessee had paid 3commission’ to HDFC on payments received from customers who had made purchases through credit cards. Survey under Section 1 33A of the Act had been conducted on HDFC, who had provided card swiping machines to retail merchants, including the respondent- assessee. A credit card holder could make payment by swiping the credit card on the said machines. The details of the bill amount, etc. were thereupon forwarded ...