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Tds on bank charges

This query is : Resolved 

26 March 2012 Dear All,

Whether TDS u/s. 194H-TDS on Commission, will be applied on bank charges recovered by the bank when a retail merchant swipes a credit card for receiving payments from customers ?

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26 March 2012 No it is not applicable..

The bank will deduct its commission before crediting the amount to the account of retail merchant


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