*Facts:*
\n1. Assessee is running a Proprietorship Business of Vendor Payment Services and Gift Cards Processing. FY 2020-21 Turnover was Rs. 96.60 lk.
\nCurrent year FY 21-22 Turnover is Rs. 13.50 crores.<\/p>\n
2. Considering the turnover of previous year \u2013 No TDS applicability for Current FY 2021-22 for Section 194C\/ 194H and 194J. However, it exceeded Rs. 50 lacs transactions with single parties and hence is covered under Section 194M.<\/p>\n
3. Total two parties where the Turnover exceed Rs. 50 Lacs.<\/p>\n
a. First Party- Availed Gateway Services for vendor payment. This party has its registered domain and known for its gateway.<\/p>\n
b. Second Party- Availed Gateway Services for vendor payment and also Gift card processing.
\nThis party uses the gateway of others, basically it works as sub-Gateway provider.
\nThis party is a *related Party*. Assessee is Director in this company.<\/p>\n
*Concern:*
\na. First Party:
\nNo TDS deducted.
\nHowever, Judicial pronouncement regarding Non applicability for TDS on gateway charges there.<\/p>\n
1. ACIT Vs. Head Infotech India Pvt. Ltd., Hyderabad
\n2. Dcit 9(3)(2), Mumbai vs Futura Value Retail Ltd, Mumbai,
\n3. MakeMy Trip (India) Pvt. Ltd., Vs DCIT,Circle-6(1), New Delhi<\/p>\n
*Doubt:*
\n1. Whether the view in case of First Party is right?<\/p>\n
2. What will be the view for Second Party w.r.t Gift card processing- TDS applicability?<\/p>\n
3. What will be the view for Second Party w.r.t Sub gateway used and Related Party?<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[139],"qa_category":[23],"qa_tag":[399,369],"class_list":["post-27198","qa","type-qa","status-publish","hentry","qa_expert-research-team","qa_category-income-tax","qa_tag-tax-deducted-at-source","qa_tag-tds"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/27198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=27198"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=27198"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=27198"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=27198"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=27198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}