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TDS on invoices received from Cashfree Payment gateway charges that are prepaid

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This query is : Resolved

Timsy Dua (Querist)
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23 December 2022 We (Pvt Ltd company) are using Cashfree as Payment gateway charges. While making the payments, Cashfree charges and deducts its service charge at the same time from our balance with it. At the month end it raises invoices for the payout and other services it offers. Query- 1. Is the company liable to deduct TDS on the invoices received from Cashfree. These are already prepaid. 2. Is yes, TDS under which section to be deposited? 3. How to recover the TDS deposited by us from Cashfree as the invoice is already prepaid in full amount? Please guide. Thanks

Read more at: https://www.caclubindia.com/experts/modify_message.asp?entry_id=1342685

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 December 2022 The payment gateway charges were in nature of fees for banking services and not 'commission' or 'brokerage' and thus no TDS was deductible from the said charges.

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