if loan is taken from NBFC's and i have been charged loan processing fees on that is TDS to be deducted on loan Processing fees????
if i do not deduct does it get disallowed under Income Tax Act???
kindly revert...
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Disallowance of expense on Non pay of TDS
Replies (12)
TDS is not deducted from interest to banks against loan
its an NBFC... And subject matter here is Loan Processing fees....
No TDS deducted on Loan processing fees
As per Sec 194A if Interest (which includes Processing fees ) is paid to the banking company regulated by Banking Regulation act, it is exempt from TDS deduction ,but since the NBFCs are not governed by Banking Regulation Act, interest paid to NBFCs is subject to TDS deduction u/s 194A
@ RatAnu
TDS is paid on interest availed from NBFC.. subject matter is Loan processing fees
TDS is paid on interest availed from NBFC.. subject matter is Loan processing fees
read my reply carefull.. its included loan processing fees.. i hope u got the answer
TDS wont be paid on processing fees
@ Ruchika... RatAnu is Right...
Processing fees is paid after loan is processed and not along with interest hence TDS is not attracted to processing fees
@ Ruchika There is an article where tribunal has held that Banks loan processing no TDS as Banking regulation act applies...rest in NBFC it is req. to deduct TDS as Banking act not applicable....
Send me that articles link herein
yes tds to be deducted and I endorse Mr. ratanu
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