TDS u/s.194H not deductible on credit card commission retained by banks

ACIT Vs Indian Hotels Company Ltd. (ITAT Delhi) It was the submission of the assessee that credit card commission was out of the realm of section 194H of the Act since there was no principal-agent relationship between the merchant establishment and the bank and, therefore, the provisions relating to tax deduction at source were not attracted in assessee’s case. The assessee also relied on Notification No. 56 dated 31.12.2012 issued by the CBDT wherein it had been clarified that credit card commission was exempt from TDS. We agree with the averment of the Ld. AR that the issue is squarely cov...