Effective January 1, 2013, the following payments can be made without TDS:
-Payment towards bank guarantee commission
-Cash management service charges
-Depository charges on maintenance of demat accounts
-Charges for warehousing services for commodities
-Underwriting service charges made to the banks which are listed in the Second Schedule of the Reserve Bank of India Act (1934), excluding foreign banks
The CBDT notification – u/s 197A(1F) – stating the same was published by the government’s press office Friday.
The notification will ‘mitigate (the) compliance burden on businesses held by individuals; firms or corporate,’ the media release said.
The notification also facilitates the payment, without TDS, of credit card and debit card commission on transactions between the merchant establishment and acquirer banks – a move that is expected to increase ‘the use plastic money’ in the country, the release said.