TDS on Processing Fees of Bank
This query is : Resolved
Ashish Ranade
(Querist)
06 October 2009
Can anybody help me w.r.t whether TDS needs to be deducted on Processing Fees charged by bank
Aditya Maheshwari
(Expert)
06 October 2009
Generally no TDS is liable for banks as noone deducts for bank charges also.
CA SANJAY MUKHERJEE
(Expert)
06 October 2009
Hi Ashish,
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.
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
no need deduct tds from banks
K V Subba Rao
(Expert)
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
Practially, TDS is not affected on Loan Processing Charges also, perhaps, taking shelter under above provision
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