When a credit card is swiped on a machine at a retail store for payment, a bank (known as the acquiring bank) facilitates the payment to a merchant after deducting its commission. Typically, the bank charges a 2% commission for facilitating payments through credit cards. The I-T Act (under section 194H) requires an assessee to deduct 10% TDS on commissions or brokerage paid to any entity.
But we are not deducting TDS on such types of transection.
Please suggest that TDS is applicable of this types of tracsection or not ?
CAclubindia
