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: VAT Audit :: due date for vat payment :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: cpt :: VAT RATES :: TDS :: articles on VAT and GST in India :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS
 
 
« Service Tax »
 GST on a knife-edge as states act tough
 Parliament Winter Session: Govt keen on proper discussion on GST Bills
 Service Tax revision to make digital content expensive: Here’s how it will impact you
 GST Council may reduce tax slabs in future: CBEC chief
 Govt to waive service tax on card transactions up to Rs 2,000
 Recovery Of Tax Under Model Gst Law
 Income Tax officials hunt for Mumbai’s ‘ghost’ assessee
 GST delay to impact Budget
 If GST not rolled out by Sept, there won't be taxation in country, warns Jaitley
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today

IBA wants finance ministry to allow non-agency banks to collect taxes
June, 04th 2016

Indian Banks' Association ( IBA ) has urged finance ministry to reconsider its order restricting agency-banks , mostly state-owned, from tie-ups with other banks for collection of direct taxes , saying the move has created problems for companies.

CBDT recently asked all the agency banks "not to enter" into any tie-ups with non-agency banks for collection of direct taxes. Any agency-bank entering into such arrangement with non-agency banks for tax collection of entities other than FPIs would be deauthorised, it added.

Agency banks are those lenders which are authorised by the government to collect taxes.

Seeking review of the instructions, the Indian Banks' Association (IBA), in a letter to the Chief Controller of Accounts (CCA), Central Board of Direct Taxes, said existing arrangements have been in place for several years now and have been of "immense benefit" to customers who can use their existing bank accounts towards all their payment obligations including direct tax payments.

The restrictions follow a report of Public Accounts Committee of Parliament in which it expressed concern over practice of some agency banks offering facility of collection of direct taxes to some 'non-agency banks'.

As per the Department of Financial Services , allocation of government business to private sector banks and use of net-banking facility for e-payment of direct taxes through agency-non-agency bank tie-ups is "unauthorised and irregular."

RBI, according to the CCA office memorandum, said that it has not approved any tie-ups arrangements between authorised and non-authorised banks. RBI was of the "opinion" that the non-agency banks were only playing the role of facilitator by aggregating the tax payments of their customers and remitting it to the agency bank like any other taxpayer.

In its letter, IBA said banks facilitating the payments do not receive any commission from the agency banks for such facilitation of clients. Furthermore, it argued, the arrangement with agency banks was merely for operational convenience of customers and such should not be "construed as sub-agency tie-ups".

"We request your good office to take up the matter with concerned authorities for continuation of the existing operational arrangements," IBA said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Customer relationship management software CRM software Operational CRM Collaborative CRM

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