TDS (tax deduction at source) exempted on certain payments to reduce compliance burden
- Malaysia Airlines plane with 5 Indians onboard missing, presumed crashed off Vietnam coast
- Bharatiya Janata Party releases second list of candidates for Lok Sabha elections
- No compromise with live-ins or gay rights, moral values supreme: RSS
- In Mumbai, new warship system malfunctions, Navy officer killed
- I'm not a terrorist, Modi should have met me: Arvind Kejriwal
The Revenue Department has exempted tax deduction at source (TDS) on certain payments like, bank guarantee commission and charges for warehousing services for commodities, to reduce compliance burden on businesses.
"Payment towards bank guarantee commission, cash management service charges, depository charges on maintenance of Demat accounts, charges for warehousing services for commodities and underwriting service charges made to the banks ... can be made without TDS with effect from January 1, 2013," the Department said.
The move is aimed at mitigating compliance burden on businesses held by individuals, firms or corporate who are using the financial services offered by banks, it added.
The Central Board of Direct Taxes (CBDT) has issued a notification granting exemption from TDS on such payments.
Also, payment without TDS of credit/debit card commission on transaction between the merchant establishment and acquirer banks has been facilitated by the CBDT
"This will also positively impact the use of plastic money in the economy," the Department said.
It further said the CBDT's move will obviate the uncertainties about the applicability of specific TDS provisions on such payments mentioned and consequent litigation.
- Chai pe Charcha gets police protection, EC officials to check on poll norm violation
- Complaint against Kejriwal: Kutch cops gather evidence
- AAP chief to hold first public meeting in Gujarat today
- Nominations for North Bangalore primary begin
- ‘Our campaigning in the state will be out of the box’
- ‘Aai Retire Hotey’ to take the stage for 100th time today