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It is not necessary to deduct tax at source on Credit card Commissions
The Honble ITAT Hyd-B Bench expressed that the creidt card commission is nothing but regular bank charges and is not subject to TDS u/s.194H. "DCIT VS M/s. Vah Magna Retial (P) Ltd, Hyderabad.

No, It is not necessary because the relationship between the bank and merchant enterprise is principal to principal and hence it is not necessary. Latest decission of Honbl. ITAT Mumbai in the case of Kotak Securities Limited vs DCIT TDS Mumbai (On bank Guarantee Commission)

The Bank is not putting any effort to collect money from the customer on behalf of the customer.  The Banker is providing gate way to credit the proceeds to the customer current account.  Since the customer is using the banking channel to collect money for which the bank is deductng discount from the gross receipts it is nothing but Bank Charges.

Credit card payments can also be treated as supply bill discounting.  If it is considered like that this is nothing but interest.

I have read in a book written by Sri Narayan Jain & Dilip Loyalka by name "How to Handle Income Tax Problems" 18th Edition (Page Nos 932 & 933) in which it was mentioned that Profits from business of generation or generation and distribution of power is taxable with effect from 2007-08.  As per 115JB all companies are subject to MAT.  Could any one please let me know any case law for the above