Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: empanelment :: ACCOUNTING STANDARDS :: due date for vat payment :: VAT Audit :: VAT RATES :: ACCOUNTING STANDARD
 
 
General »
 Shah gets notices over civic tax dues
 Tax revenue down in first six months after prohibition
 Post demonetisation, Income Tax department sends 30 cases of irregularities to Enforcement Directorate, CBI
 Don’t rush into a new tax without being prepared
 Can’t tax income from palace rent: Supreme Court
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November

Reserve Bank of India in tax net
January, 20th 2011

The Reserve Bank of India had some unusual visitors a week ago. Officials from the tax deducted at source (TDS) wing of the income tax department visited the Reserve Bank of India (RBI) headquarters to inquire into the latters failure to deduct tax at source since July 2007 on payments amounting to more than Rs800 crore.

The department claimed that according to income tax (I-T) rules, the RBI should have deducted TDS at the rate of 10% on this amount, which comes to more than Rs80 crore. After deduction, RBI should have deposited the TDS with the I-T department by the 7th of the month after the one it was deducted for.

The I-T authorities found that the RBI had made payments to some government banks as agency commission but failed to deduct TDS on it. The commission was paid for banking and government business conducted by these banks on behalf of the RBI.

The department is considering levying 100% penalty (on the TDS amount) on the RBI for not complying with TDS laws.
Officers at Aaykar Bhavan, the head office of the I-T department, said the inquiry was conducted because the department believed that the TDS needed to be deducted on payments made by the RBI as agency commission under section 194H of the Income Tax Act.

The RBI, in its defence, cited a circular issued by the Central Board of Direct Taxes (CBDT) in 2003, which said that no TDS was required to be deducted on turnover commission paid by RBI to agency banks.

The I-T department contended that agency commission and turnover commission are different and the circular was in force only until 2006. The department will not ask the RBI to pay the TDS because it will recover that from the banks.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions