News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« News Headlines »
 DIY guide to file your ITR
 Income Tax return online filing: Ensure your Form 16 is valid and here is how you can check for it
 How to report income from investments ITR filing
 How to file income tax returns?
 Will income tax department extend July 31 deadline for ITR filing?
 5 smart things to know about income tax return
 How to file ITR 1 with salary, home loan and other income for FY 2018-19
 Filing ITR online? Here's how you can check if your Form 16 is valid
 What to check in your Form-16 while filing ITR
 Here is how to file income tax return online
 Filling income tax return forms not a smooth affair

CBDT provides fillip to digital payments
June, 23rd 2016

Payment system companies have cause for cheer as the Central Board of Direct Taxes (CBDT) has helped improve cash flows for them by exempting seven types of transactions from TDS obligations.

Businesses making payments to ‘payment system companies’ (such as electronic wallet providers, merchant aggregators) in respect of the seven specified transactions will not be required to deduct tax at source, the CBDT has said.

Seven transactions
The seven transactions specified for the TDS exemption are bank guarantee commission; cash management service, depository charges for maintenance of DEMAT accounts; charges for warehousing services for commodities; underwriting service charges; clearing charges (MICR) including interchange fee and credit card or debit card commission for transaction between merchant establishment and acquirer bank.

Commenting on this development, Naveen Surya, Managing Director, Itz Cash, a payment solutions provider, said that he welcomed the CBDT move to support payment system companies.

“This is going to improve cash flows for companies like us and also enable these companies to grow faster,” Surya said.

Amit Singhania, Partner, Shardul Amarchand & Mangaldas, a law firm, said the CBDT move will reduce the compliance burden and aid in enhancing the digital economy.

Rakesh Nangia, Managing Partner, Nangia & Co, said the CBDT move should be taken positively by the companies such as Paytm, Mobikwik and PayUmoney.

“Companies would now be motivated to use these channels to make payment, thereby providing the impetus to the growth of these payment system companies.

“Encouraging the growth of payment system companies is a constructive step towards making the ‘Digital India’ dream of India’s growth story a reality,” Nangia said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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