Deduction of Tax and surcharge on commission paid to SAS/MPKBY/PPF Agents- a clarification regarding

SB ORDER NO. 9 /2009

No.107-2/2007-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001.

Date: 14.9.2009

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Deduction of Tax and surcharge on commission paid to SAS/MPKBY/PPF Agents- a clarification regarding

Sir / Madam,

The undersigned is directed to refer to this office letter of even number dated 25.5.2007(SB Order No.3/2007) vide which the rate of TDS to be deducted from the agent’s commission was conveyed.

2. Now this office is receiving many references where Income Tax Authorities have issued certificates under Section 197 of Income Tax Act 1961 for deduction of TDS at lower rates.

3. It is further clarified that under Section 197 of IT Act 1961, Income Tax Authority can issue certificate for deduction of TDS at lower than prescribed rate and whenever such certificate is presented by any agent, that should be accepted and TDS should be deducted at the rate mentioned in the certificate. The certificate should be collected from the agent and attached with the schedule.

4. It is requested that this may be brought to the notice of all post offices immediately for information, guidance and necessary action.

5. This issues with the approval of DDG(FS)

Yours faithfully,

(Kawal Jit Singh)

Assistant Director (SB)

Copy to:-

1. Director (Fgn.Post & Mkt) O/o Pr. CPMG T..N Circle. (SDC

Chennai)

2. Director of Audit (P&T), Delhi.

3. All Directors/Dy. Directors of Accounts, Postal

4. Director, Postal Staff College, Ghaziabad.

5. All Directors, Postal Training Centres.

6. DDG(VIG)/DDG(Estt.)

7. ADG(BS)/ADG(FS)

8. AD /Inspection/PF/Vigilance/Postal Accounts Section

9. All Accounts Officers ICO(SB)

10.All recognized unions.

11.PS to Member (T)