Banks only enjoy exemption from TDS u/sec 194A ( Interest other than interest on securities) and in case of any other payments like Commission /Brokerage/Technical fees etc TDS is deductible as there is no special status for Bank.
Only point is which section will cover the payment of processing fees. Would like other learned experts to join this.
06 October 2009
Specific provision exists for not affecting TDS on payment of INTEREST to Bank u/s 194A (Ref: Para 156 of 32nd edition of Singhannia's Ready Reckoner)
Practially, TDS is not affected on Loan Processing Charges also, perhaps, taking shelter under above provision
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