Income Tax - No TDS in Certain Cases
GOVERNMENT has notified that "No deduction of tax under Chapter XVII of the Act shall be made on the payments of the nature specified below, in case such payment is made by a person to a bank listed in the Second Schedule to the Reserve Bank of India Act, excluding a foreign bank, 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);
(vii) credit card or debit card commission for transaction between the merchant establishment and acquirer bank.
NOTIFICATION NO. 56/2012 [F. NO. 275/53/2012-IT(B)], DATED December 31 2012