Tds on merchant service fee

Dear Friends,

I have querery regarding Merchant Service Fee Charges charged by the bank for the collection of credit card payment. The assessee company who are into the liquor business installed the EDC machines at the shops for selling the liquor through credit cards. Now the bank collects the credit card payment from the customer and deposit the same into the assessee bank account and in turn charges some collection charges from the assessee as Merchant Service Fees Charges by raising the invoice on the assessee. And also sometime the bank directly debit the charges from the account of the assessee. So the issue is whether these charges comes under the ambit of TDS? If so, under which category? If provision of TDS is applicable, then how the assessee will deduct the tax, when the bank directly debit the charges from the assessee's bank account.

Please reply.

Thanks in Advance.

Regards,

Gurmeet Singh

Replies (1)

Section 194H attaracted and you have to deduct tax accordingly.

 

 

 


Dear Friends,

I have querery regarding Merchant Service Fee Charges charged by the bank for the collection of credit card payment. The assessee company who are into the liquor business installed the EDC machines at the shops for selling the liquor through credit cards. Now the bank collects the credit card payment from the customer and deposit the same into the assessee bank account and in turn charges some collection charges from the assessee as Merchant Service Fees Charges by raising the invoice on the assessee. And also sometime the bank directly debit the charges from the account of the assessee. So the issue is whether these charges comes under the ambit of TDS? If so, under which category? If provision of TDS is applicable, then how the assessee will deduct the tax, when the bank directly debit the charges from the assessee's bank account.

Please reply.

Thanks in Advance.

Regards,

Gurmeet Singh

 

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