HDFC Bank has been accredited by the Tamil Nadu Government to act as its banker for collection of state revenues. Following this, the bank has commenced online collection of commercial taxes/value added tax (VAT) for the Government of Tamil Nadu.
"This has opened up multiple channels of tax payment for the people of Tamil Nadu, and ensured convenience, speed, accuracy and will lead to cost savings for all stakeholders," said a release from the bank.
"HDFC Bank already has an advanced and user-friendly Internet banking service, and will offer this facility to remit taxes to state government to all its customers without levying any service charges," the release added.
In a statement, Rajender Sehgal, Country Head, Financial Institutions, PSUs & Govt. Business Group, HDFC Bank, pointed to the long relationship the bank had enjoyed with the Tamil Nadu Government.
HDFC Bank is one of the leading banks in the country in terms of revenue collection for the Centre as well as some State Governments. Departments such as CBDT (Central Board of Direct Taxes), Central Board of Excise and Customs (CBEC) et al. have given mandates to the bank for on-line and physical collection of taxes across the country.