Whether tds provisions apply

according to me it is not but wait for expert's comments

TDS would be applicable on Loan Processing Fees u/s 194A by considering it as Interset and deduction for the same is allowable u/s 24(b) of the income tax act.

But no TDS on Bank Guarantee comission..

Thanks..

How can the Bank procesing fee be considered as interest.  It's a one time payment & hence not TDS & deduction u/s 24(b) will be available. Loan processing fee is paid to teh bank to verify if you are eligible for the loan with the required documents, after whihc your loan gets sanctioned & you start payineg interest on the amount sanctioned. 

So how can loan processing fee be considered as interest??

No TDS on Bank gurantee commission.