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No deduction of tax (TDS) is not required on the payments of the nature as under if made to a
bank listed in the Second Schedule to the Reserve Bank of India Act , 1934 (2 of 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 (51 of 2007), namely

(i) bank guarantee commission;
(ii) cash management service charges;
(iii) depository charges on maintenance of DEMAT accounts;
(iv) charges for warehousing services for commodities;
(v) underwriting service charges;
(vi) 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;
(vii) credit card or debit card commission for transaction between merchant establishment and
acquirer bank.

TDS On Bank Charges

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