As per Notification from CBDT 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 now be made to Bank without TDS,
Exemption from TDS on credit or debit card commission on transactions between the merchant establishment and banks will positively impact the use of plastic money in the economy
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 now be made to Bank without TDS,
Exemption from TDS on credit or debit card commission on transactions between the merchant establishment and banks will positively impact the use of plastic money in the economy
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