Tds on bank processing fees should be deduct or not

as per section 194 A any payment made to following are not under obligation to TDS.

* Banks, co-operative society in banking business

* LIC

* UTI

* a company or co-operative society engaged in insurance business

* any financial corp. established by central, state act.

and so on

HENCE INTEREST, PROCESSING FEES PAID TO BANK ARE NOT UNDER OBLIGATION TO TDS

Mr. Tax pandit 

Section 194 A only for interest and Processing fees are not part of  Interest so its not cover in sec.194 A.

ANd Mr.PRitam Jain

I know bank out of TDS Purview but can u tell me or reffer any circular or notification either income tax act or banking reg. act. , in which mentioned there is no deduction of TDS liability on Processing fees.

Umesh,

I invite your attention to section 197A(1F). Following payments, inter alia,  made to a bank excluding a foreign bank will not be subjected to TDS under section 194J:

bank guarantee commission

cash management services

depository charges

MICR charges.

Thanks,

Thanks to all

I got it.