Friday 24 June 2016

No TDS on Specified Payments made to INDIAN BANKs

The Central Government hereby notifies that no deduction of tax shall be made on the following payments made by a person to a bank listed in the Second Schedule to the Reserve Bank of India Act, 1934, excluding a foreign bank, or to any payment systems company authorised by the Reserve Bank of India under Sub-section (2) of Section 4 of the Payment and Settlement Systems Act, 2007.

1.     Bank guarantee commission
2.     Cash management service charges
3.     Depository charges on maintenance of DEMAT accounts
4.     Charges for warehousing services for commodities
5.     Underwriting service charges
6.  Clearing charges (MICR charges) including interchange fee or any other similar charges by whatever name called charged at the time of settlement or for clearing activities under the Payment and Settlement Systems Act, 2007
7. Credit card or debit card commission for transaction between merchant establishment and acquirer bank.

This notification shall come into force from the date of its publication in the Official Gazette