Section 194H TDS not Applicable on Commission to Credit Card Company

Global Healthline Pvt. Ltd Vs ITO (ITAT Delhi) The first issue relates to disallowance of sum of Rs.20,83,340/- on account of credit card commission under Section 40(a)(ia) of the Act. It is the case of the assessee that provisions of Section 194H are not attracted having regard to nature of such expenses. It is contended that provisions of Section 194H casting obligation on the assessee to deduct tax at source arises only when a person acts on behalf of other person. In the present case, the commission is unilaterally retained by the credit card company. It cannot be said that bank acts on be...