RBI/2004/248
DGBA.GAD.No. H-1225 - 1258/42.02.001/04-05
October 27, 2004
The Chairman & Managing Director/ Managing
Director
State Bank of India & its Associates
All Nationalised Banks
Jammu & Kashmir Bank Ltd., IDBI
Bank Ltd./ HDFC Bank Ltd.
ICICI Bank Ltd. /UTI Bank Ltd.
Dear Sir,
Scheme for Acceptance of Income and Other Direct
Taxes (Central Government) and Profession Tax/Other Taxes of State Governments
through Agency Banks
Please refer to our circular DGBA.GAD. No. H-41/42.02.001/2003-04
dated July 22, 2004 allowing agency banks to remit the taxes payable by them
(Centre and States) through their own branch network. It has since been decided
that w.e.f. 1st November, 2004 agency banks should pay their own
tax liabilities (TDS, Corporation Tax etc.) to Government Account through their
own branches only. Such payments should be indicated in the scrolls separately
so as to distinguish them from other transactions.
2. It is reiterated that the banks are not entitled
for ‘Turnover Commission’ on transactions of the above type as they are not
doing any agency functions as our agents while making payment of their own tax
liability. The banks are, therefore, requested to indicate such transactions
separately without clubbing it with the claim for turnover commission from Reserve
Bank Offices. The banks should furnish a certificate to the effect that own
tax liabilities (TDS, Corporation Tax, etc.) paid by it has been excluded while
claiming ToC.
3. We shall be glad if you will please issue
necessary instructions clarifying the above position to your concerned branches.
4. Please acknowledge receipt.
Yours faithfully,
(M.T. Varghese)
General Manager
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