Dismissing the appeal of the Revenue the Court held that service charges paid by assessee to National Financial Switch and Cash Tree consortium for routing transactions of payments made by its customers to acquiring bank would not be liable to TDS under section 194H of the Act.(AY. 2008-09)
CIT v. Karnataka Bank Ltd. (2022) 142 taxmann.com 64 (Karn.)(HC) Editorial : SLP granted to Revenue, CIT v. Karnataka Bank Ltd.(2022) 288 Taxman 725 (SC)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Commission or brokerage, etc.-Service charges-Not liable to deduct tax at source. [S. 194H]