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 »
 How to fill salary details in ITR-1 for FY 2018-19
 Step-by-step process to file income tax return online ITR filing FY19
  Order under section 119 of the Income-tax Act, 1961
  Things to keep in mind while filing ITR
 Here's how the new Form 16 will change income tax return filing this year
 Things you must keep in mind while filing income tax returns this year
 Five tax saving investments with tax-free income Double income tax benefits in 2019
 Companies (Incorporation) Fifth Amendment Rules, 2019
 Filing Income Tax Return? Here is list of important documents
 Who should and should not file ITR form 4 Income Tax Return (ITR) filing
 Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2019

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