Applicability of TDS provision u/s 194H, Income Tax

[A RAVINDRA]

The dealer has provided the option of credit payment to its customers.Dealer get the proceeds from bank after the deduction of commission at agreed rate on credit card swipings. I would like to know whether TDS provision u/s 194H is applicable.

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[Surender Gupta]

Explanation (i) of section 194H defines the meaning of commission or brokerage. If the transaction is qualified to be covered by the this explanation, the dealer is required to deduct TDS on commission paid to online payment gateway.