TDS

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This discussion clarifies whether Tax Deducted at Source (TDS) is applicable on processing fees paid to Exim Bank. Generally, TDS is not required on payments made to banks, as they are exempt under the Banking Regulation Act. Since Exim Bank is a financial institution in India, payments made to it are typically exempt from TDS.

swasti

swasti (Querist)
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14 February 2020 A company is paying processing fees to Exim Bank. Is TDS applicable on the same?

Gokul Sharma

Gokul Sharma (Expert)
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14 February 2020 TDS should be deducted by resident on Payment of processing fee to financial institutions which are not Governed by Banking Regulation Act. In case payment is to a BANK same is Exempt.
so in your case tds not to be deducted.

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swasti

swasti (Querist)
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14 February 2020 Thanks a lot Sir. But is Exim bank also governed by Banking Regulation Act?

Gokul Sharma

Gokul Sharma (Expert)
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14 February 2020 Export–Import Bank of India is a finance institution in India, established in 1982.
also get knowledge from the employee for your query

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