Tds on payment to banks
This query is : Resolved
CA Mukkul Mehta
(Querist)
17 November 2011
Whether the TDS is deductible on payment of Upfront Fee, Processing Fee & Syndication Charges to a Bank.
Our Client has recently taken a loan from a Bank and the syndication is in process. I am able to find one circular which says that no TDS would be deducted on interest payment to banks, but what about payment of Upfront Fee, Processing Fee & Syndication Charges, whether TDS is deductible or not ?
Our Client has recently taken a loan from a Bank and the syndication is in process. I am able to find one circular which says that no TDS would be deducted on interest payment to banks, but what about payment of Upfront Fee, Processing Fee & Syndication Charges, whether TDS is deductible or not ?
CA SUMiT PATWARi
(Expert)
17 November 2011
According to me, the terminology may be different, but in principal they are finance charges only.
Hence TDS need not be deducted on such payments made to Banks!
Hence TDS need not be deducted on such payments made to Banks!
17 November 2011
In view of section 2(28A) such payments are covered under section 194A(3)(iii)(a) and hence TDS provisions does not attract.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- MSME disclosure and disallowance
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
