Section 194H TDS not deductible on payment of credit card commission to banks

Indian Hotels Company Limited Vs ACIT (ITAT Mumbai) ITAT Mumbai held that Commission to bank on payments received from customers who had made purchases through credit cards is not liable to TDS under section 194H of the Act. Facts- The Assessee is a domestic company engaged in the business of running hotels and resorts. The Assessee had paid total credit card commission of INR 14.91 Crores to various banks and claimed deduction for the same. The majority of payments were made to the foreign banks (viz. American Express, Citi Bank and HSBC Bank) which have obtained “NIL” tax withholding cer...