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Query regarding tds

Aradhay Gupta (Hapur) (25 Points)

18 February 2014

Please tell me....

If any assessee makes payment of Credit Card to the bank, then he is eligible to deduct tds?

if yes then at which rate?........

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CA. Kuldeep Singhi (Entrepreneur) (424 Points)
Replied 18 February 2014

As Reported by Financial Express 05-01-2013 The Central Board of Direct Taxes said in a notification that from January 1, payments received by banks for seven specified services are exempt from TDS obligation. These include payment received as bank guarantee commission, cash management service charges, depository charges on maintenance of Demat accounts, charges for warehousing services for commodities, underwriting service charges, clearing charges (MICR charges) and credit card or debit card commission for transaction between the merchant establishment and acquirer bank. Such payments can be made without TDS, the notification said.

As posted by CA.Paras Bafna in experts