TDS on Bank charges to company

This query is : Resolved

jaya (Querist)
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07 May 2025 Hi,

if a firm pays Bank charges to a company (for which they raise bill with GST), do that firm has to deduct the TDS on it? if yes, then what will be the threshold?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 May 2025 No TDS applicable in case of the payment is of reimbursement of bank charges.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 May 2025 if you are paying it to a company, that is not a bank, then yes, normal TDS provisions will apply if they are raising a GST invoice. If it is a reimbursement invoice, then no TDS.

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jaya

jaya (Querist)
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08 May 2025 the narration says " Being Dec'24 FOFO Exp-Bank charges" ...so still we consider it as reimbursement??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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09 May 2025 it has nothing to do with the narration. the nature of recipient matters as well as whether the invoice is a reimbursement invoice of a commercial invoice..

jaya

jaya (Querist)
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09 May 2025 it says tax invoice in that case we need to do?