Master Circular on Agency Commission
The Reserve Bank of India has issued a master circular on agency commission payable to banks on government transactions.
Revised Rates: The agency commission rates have been revised effective July 1, 2012, for various transactions, including:
- Public Provident Fund Scheme, 1968 (PPF)
- Senior Citizen Savings Scheme 2004 (SCSS)
Eligible Transactions: The following government transactions are eligible for agency commission:
- Income/Other Direct Taxes
- Profession Tax/Other Taxes of State Government
TDS Deduction: Tax Deduction at Source (TDS) is applicable on agency commission.
Related Circulars: This master circular supersedes and consolidates the following circulars:
- DGBA.GAD.H-2529/31.12.010(C)/2012-13 dated October 31, 2012
- DGBA.GAD.No. H- 8852 /31.12.010(C)/2010-11 dated June 21, 2011
- DGBA.GAD.No.H- 41/42.02.001/2003-04 dated July 22, 2004
- DGBA. GAD. No. H-3568-3601/42.01.001/2004-05 dated January 13, 2005
- DGBA.GAD.No. H-190/31.12.010/2003-04 dated September 2003
Chat with the Master Circular:
Download: Master Circular on Conduct of Government Business by Agency Banks – Payment of Agency Commission