India: No requirement to withhold tax on sales of goods to banks
Notification excludes certain banks purchasing goods from requirement for sellers to withhold tax from buyer on certain sales of goods
The government issued a notification under which certain banks (i.e., an International Finance Services Centre (IFSC) unit) that purchase goods are excluded from the requirement under the Income-tax Act, 1961, for a seller to withhold tax from the buyer on sales of certain goods.
Such banks must submit a verified statement-cum-declaration in prescribed form to the seller, designating the 10 consecutive years for which the bank claims the tax holiday.
The notification is effective from January 1, 2025.
Read a January 2025 report prepared by the KPMG member firm in India