TMI Blog2013 (8) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... ducted by the banks - assessee only receives the payment form the bank/credit card companies concerned, after deduction of commission thereon, and thus, this is only in the nature of a post facto accounting and does not involve any payment or crediting of the account of the banks or any other account before such payment by the assessee. Liability to make TDS under the said section arises only w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the nature of commission within the meaning of section 194H of the Act and hence no TDS is required to be deducted u/s 194 H of the Act - Decided against Revenue. - ITA No.905/Hyd/2011 - - - Dated:- 10-4-2012 - Shri D. Karunakara Rao And Shri Saktijit Dey, JJ. For the Appellant: Dr. B. V. Prasad Reddy For the Respondent: None ORDER Per D. Karunakara Rao, Accountant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as falling within the purview of section 194H. (iii) The CIT(A) s order is erroneous inasmuch as the commission retained by the credit card companies is akin to the interest on mobilization advance retained by the principal contractor from the payments made to the contractee which are being subjected to TDS. (iv) The CIT(A) s decision is against the provisions of sec.194H and the legisla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and thus, this is only in the nature of a post facto accounting and does not involve any payment or crediting of the account of the banks or any other account before such payment by the assessee. Considering these submission of the assessee, the CIT(A) accepted the claim of the assessee for deduction of the amount of ₹ 16,34,000 on the following reasoning- 9.8 On going through the natu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only facilitates the electronic payment, for a certain charge. The commission retained by the credit card company is therefore in the nature of normal bank charges and not in the nature of commission/brokerage for acting on behalf of the merchant establishment. Accordingly, concluding that there was no requirement for making TDS on the Commission retained by the credit card companies, the disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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