The Hindu Business Line : IDBI Bank in talks with AP, Karnataka for tax collection

IDBI Bank, which recently tied up with five State Governments for collection of sales tax and stamp duty, is currently in the final stage of negotiations with the Governments of Andhra Pradesh and Karnataka for similar alliance, said Mr D.C. Jain, Head (Government Business).

He was speaking to the media in connection with the bank's launch of the country's first online direct tax payment facility in Hyderabad.

Mr Jain said that the bank, while strengthening its position in its traditional areas of business such as retail and corporate banking, has made forays into Government business as well as securing CBDT and CBEC mandates to collect income-tax, excise duty and service tax.

The bank has got the mandate from the Governments of Gujarat, Punjab, and Uttaranchal for collection of sales tax, and from Maharashtra and Gujarat for collection of stamp duty.

It is also authorised to disburse Central civil pension and Defence pension.

"We expect these initiatives to give the bank access to large business and further catalyse the bank's growth plans."

Of around Rs 12 lakh crore total collections of Government business, the collections of CBDT account for nearly Rs 95,000 crore.

IDBI Bank, which has so far recorded collections of Rs 5,500 crore plus during the current fiscal, expects to register total volumes of around Rs 8,000 crore by the end of the year, Mr Jain said.

On the online direct tax payment facility, he said that it would be of great help to busy executives and those who travel a lot. For corporates, the bank proposes to integrate this facility with their back-end accounting systems so that the whole process is fully automated.

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