Tds on msf charges !

 

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 electronic retail business installed the EDC machines at the shops for selling the products 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 u/s 194H as "Commission"? 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,

Dilip Nagdev

 

 

Replies (2)

as per muy knowledge since the charges are paid to the bank are not liable to TDS

 

also view of others

Mr.Valji,

Can you please mentioned some case laws regarding the same?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 July 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 23 July 2026
Article

Gianender & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details
Company
31 July 2026
Senior Accountant - Bunia, Democratic Republic of Congo

AD GLOBAL LTD

Mumbai

B.Com

View Details
Company
ARTICLESHIP 28 July 2026
Article/Intern/Semi-Qualified/Fresher B.Com

VNSS & Co

Mumbai

Others

View Details
Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
28 July 2026
Senior accountant

RJ Public School

Bengaluru

B.Com

View Details
Company
Featured 16 July 2026
Semi Qualified Company Secretary

Vakilsearch.com

Chennai

CS

View Details
Follow