News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
Service Tax »
 How work from home may increase tax liability for certain employees
 How waiver or fall in rent may impact your tax liability
 What to do if you get a scrutiny notice from the tax department
  How many income tax returns (ITRs) are picked up for scrutiny each year
  Notification u/s 138 of the Income Tax Act, 1961 in respect of Competition Commission of India
 You may have to file ITR even though your income might not be taxable
 Tax saving investment options for lower income slabs Use this formula to calculate post-tax return
 Deadline to claim tax benefits under Section 80C expires today ITR Filing FY 2019-20
  Tax on your gold and real estate investments
 Notification of Sovereign Wealth Fund under section 10(23FE) of the Income-tax Act, 1961
 ​Notification of Sovereign Wealth Fund under section 10(23FE) of the Income-tax Act, 1961

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 | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting