CA AMIT GOSWAMI (IN PRACTICE PROPRIETOR) (131 Points)
26 December 2011Dear Sir/ Madam
I want to know that organistion which are using debit/ credit card swipe machine to collect payments from customer.
For this service credit/ debit card company charges commission for this service
company pays after deduction of commission i.e organision only recieve net ammount
What is lability about TDS on commission.
Credit Debit card Company may be
American Express
HDFC Bank
ICICI Bank
Axis Bank
SRIKAR BABU
(AM)
(102 Points)
Replied 26 December 2011
My view is that bank is acting as agent for you. Banks are neither raising any invoice on you nor you making payment to bank. Hence, there is no question of tax deduction.
CAclubindia
