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
A very good and interesting question.
Whether the foreign party charges you any bank charges saperately... if yes then you can add it to your cost of Purchases. There are no provision in income tax to deduct TDS for any banking industry or Telecom industry. Further if the bill is dihonoured by your local bank- there is no question of TDS only. Still if you will elaborate your question a bit.. you will be better guided...
I agree with you Bhavik Sir
CAclubindia
