Bank charges paid to foriegn bank

Kuldeep (Trainee ) (100 Points)

21 May 2010  

Foriegn supplier of ours charges us bank charges for realisation of their bill amount , such amount is not included in FOB certificate so we debited such amount as Foreign Bank charges.

Question here is that this transaction is subjected to foreign remittance so whether we liable to deduct taxes on such amount.

And whether tax deduction is liable on bank's interest  on discounting of foreign bill by our local bank.

Thanks for your suggestion