No Tax Deduction at Souce on Certain Cases, Notification issued by Income tax department which is as under:
Section 197A of the income-tax Act, 1961 - Deduction of tax
at source - no deduction in certain cases - Specified payment under section
197A(1f)
NOTIFICATION NO. 56/2012 [F. NO. 275/53/2012-IT(B)], DATED 31-12-2012
In exercise of the powers conferred by sub-section (1F) of
section 197A of the Income-tax Act, 1961 (43 of 1961), the Central
Government hereby notifies that no deduction of tax under Chapter XVII
of the said 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, 1934 (2 of 1934),
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.
2. This notification shall come into force from the Ist day of January, 2013.
