TDS not deductible on sum paid to banks for utilization of credit card facilities

Commission paid to the credit card companies cannot be considered as falling with in the purview of S.194H. Even though the definition of the term “commission or brokerage” used in the said section is an inclusive definition, it is clear that the liability to make TDS under the said section arises only when a person acts on behalf of another person.

In the case of commission retained by the credit card companies however, it cannot be said that the bank acts on behalf of the merchant establishmen

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