Secton 197a(1f)

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subhashis de (Querist)
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06 July 2013 I would like to know about the implication of the 197A(1f) section in TDS. pls explain me.
and is No deduction( certificate recd.) applicable u/s 194I of TDS?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 July 2013 Section 197A(1F):

Implications: By inserting the section and issuing Notification No 56/2012, certain specified payments to institutions etc. have been exempted from the provisions of TDS. The specified payments are-

(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.
.
On Rent U/s 194I there is no exemption and as such TDS has to be deducted.
.