No TDS u/s 194H on commission paid to banks on processing of credit card transactions

Pr. CIT Vs Hotel Leela Venture Ltd. (Bombay High Court) Conclusion: Bank guarantee commission was not in the nature of commission paid to an agent but it was in the nature of bank charges for providing one of the banking service, therefore, the charge collected by bank for such service did not amount to commission within the meaning of section 194H and such commission could not be disallowed under section 40(a)(ia). Held: Assessee was a company, engaged in the business of setting up of and operating of Deluxe Hotels. AO noticed that assessee had not deducted tax at source in terms of Section 1...