TDS on commission

TDS 1017 views 1 replies

Dear Sir/ Madam

I want to know that organistion which are using debit/ credit card swipe machine to collect payments from customer.

For this service credit/ debit card company charges commission for this service

company pays after deduction of commission i.e organision only recieve net ammount

What is lability about TDS on commission.

Credit Debit card Company may be

American Express

HDFC Bank

ICICI Bank

Axis Bank

Replies (1)

My view is that bank is acting as agent for you. Banks are neither raising any invoice on you nor you making payment to bank. Hence, there is no question of tax deduction. 

 


CCI Pro

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