Tds-on processing fees

This query is : Resolved

sanjay choudhary (Querist)
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29 June 2013 If a private bank(kotak mahindra)engaged in a contract
for discounting the bill of debtors ,for this he sigh a contract for one financial year at a certain amount.
On signing a contract he charged a processing fees which belongs from such signing a deal
Again in next year the new contract will be conducted and again they will charged processing fees
Pls tell that whether to Ded TDS on such processing fees paid to bank on sanctioning the contract.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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29 June 2013 plz provide the details of your transaction

sanjay choudhary

sanjay choudhary (Querist)
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29 June 2013 pls solve this Querry

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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29 June 2013 In my opinion TDS should not be deducted on Processing Fees.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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29 June 2013 I agree with vinita Jee

sanjay choudhary

sanjay choudhary (Querist)
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29 June 2013 Any Provision on which its not allowed mam

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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29 June 2013 I have faced a similar situation with SBI wherin 20lacs have been charged on us but no TDS.

Moreover Bank Charges do not attract TDS Processing Fees is Bank Charges so TDS is not applicable on it

sanjay choudhary

sanjay choudhary (Querist)
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29 June 2013 But mam tds is not applicable on schedule bank,as per my knowledge in case of mine kotak bank is not a schedule bank
Pls revert on this

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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29 June 2013 Still in my opinion tds should not be deducted on Bank Processing Fees

sanjay choudhary

sanjay choudhary (Querist)
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29 June 2013 ok mam thank u