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2019 (4) TMI 1317 - HC - Income TaxTDS u/s 194H - amount withheld by the banks/credit card agency as service charges in respect of credit card services provided - Whether the Respondent, while making payment to the bank of credit card charges, was required to deduct tax at source? - relationship between assessee and bank - HELD THAT:- The amount retained by the bank for the fees charged for having rendered banking services, which cannot be treated as a commission or a brokerage paid in course of use of banking service by a person acting on behalf of another for buying or selling goods. See Commissioner of IncomeTax Vs. JDS Apparels P. Ltd. ] 2014 (11) TMI 732 - DELHI HIGH COURT] The bank in question is not concerned with buying or selling of goods or even with the reason and cause as to why the card was swiped. It is not bothered or concerned with the quality, price, nature, quantum etc., of goods bought/ sold. The bank merely provides banking services in the form of payment and, subsequently, collects the payment. The amount punched in the swiping machine is credited to the account of the retailer by the acquiring bank, after retaining a small portion of the same as their charges. The banking services cannot be covered and treated as services rendered by an agent for the principal during the course of buying or selling of goods as the banker does not render any service in the nature of agency. - decided against revenue.
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