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2019 (3) TMI 1359 - HC - Income TaxTDS u/s 194H - TDS liability on account of payment gateway charges - addition u/s 40(a)(ia) since according to the AO the said payment was in the nature of commission paid to the Banks - ITAT has allowed the Assessee’s appeal on this issue and held that the payment gateway charges were in nature of fees for banking services and not ‘commission’ or ‘brokerage’ and thus no TDS was deductible from the said charges under Section 194H - HELD THAT:- Central Government, by notification dated 31st December, 2012 has notified that no TDS shall be made on specified payments to the banks listed in the Second Schedule to the Reserve Bank of India Act. The assessee is right in contending that by virtue of the above notification no TDS is deductible from payments made towards “credit card or debit card commission for transaction between the merchant establishment and the acquirer bank”. This applies to the charges paid to the Banks for providing payment gateway in the case on hand. In that view of the matter, this Court finds that the ITAT has not committed any error in deleting the addition This Court finds that the ITAT has not committed any error in deleting the addition made by the Assessing officer under section 40(a)(ia) of the Act on account of non-deduction of TDS from the payment gateway charges paid to the Banks - Decided in favour of assessee.
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