Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (12) TMI 1121 - ITAT JAIPUR

2015 (12) TMI 1121 - ITAT JAIPUR - TMI - TDS u/s 194H on the credit and swap charges paid to the bankers - CIT(A) deleted the addition - Held that:- In assessee’s case, the assessee had sold the goods to the customer and payment received through credit care and swap charges at the time of crediting the sale amount in the account of the assessee and service charges were charges by the banks for providing the facility of credit card. The findings given by the ld CIT(A) are not controverted by the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed CIT(A)-III, Jaipur for A.Y. 2011-12. The sole ground of appeal is as under:- 1 The ld CIT(A), Jaipur has erred in law and on facts holding that the assessee is not liable to make TDS U/s 194H on the credit and swap charges paid to the bankers 2. The sole ground of the appeal is against, not liable to make TDS I/s 194H on the credit and swap charges paid to the bankers. The ld DCIT, (TDS), Jaipur had verified the assessee s case and found that the assessee had deducted TDS amounting to ₹ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essee which has availed by it. The ld DCIT (TDS) held that there was a relation between the assessee and the bank as principal and agent on following reasoning:- a. Full legal and equitable title on the payment to be received against sales made by the assessee remains with him and at no stage passes to the bank. b. The bank i.e. the agent cannot give any discount or alter in any way the nature of transaction or the sale price decided by the seller i.e. the assessee. c. The bank is allowed to col .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

orne by the merchant or principal. f. The bank charges commission/fee for services rendered as described in the agreement/contract between the merchant i.e. the principal and bank i.e. the agent. As per DCIT (TDS), the assessee was liable to deduct tax. Accordingly, he calculated demand U/s 201(1) and interest U/s 201(1a) of the Income Tax Act, 1961 (in short the Act) at ₹ 8,84,144/- and 1,63,961/- respectively. Thus, total demand was credited at ₹ 10,48,105/- 3. Being aggrieved by t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ee deserves to succeed in this regard. Section 194H is applicable where any commission has been paid by the Principal to the commission agent. This is not a case of commission agent as assessee sold its goods through credit card and on presentation of bill issued against credit card, the bank makes payment to the assessee after deducting agreed fees as per terms and conditions in case of credit card. This is not a commission payment but a fees deducted by the bank. If there is an agreement, that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

items through credit card. Bank cannot refuse the payment to the shop keeper who sale their goods through credit card. Only in those cases where goods are found damaged and credit card holder inform the bank that the material purchased by them is damaged or defective and request the bank not to make the payment, in such cases only bank can withhold the payment, otherwise the bank has to make the payment to the shop keeper. Therefore, in our considered view, there is no such relation between the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

credit cards to the credit card holders on certain fees or whatever the case may be and the card holder purchases material from the market through his credit card without making any payment and that shop keeper presents the bill to the bank against whose credit card the goods were sold and on presentation of bill as stated above the bank makes the payment. Therefore, in our considered view, provisions of section 194H are not attracted in this type of transaction. Therefore, we hold that addition .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version