06 May 2024
IS TDS applicable on processing fee paid to NBFC ? please advise. We have paid processing fee etc to NBFC , Should be required to deposit TDS on this Processing fee.
08 May 2024
TDS must be deducted on processing fees levied by Non-Banking Financial Companies (NBFCs) as per section 194A of the Income Tax Act 1961. According to the definition of interest in section 2(28A) of the Income Tax Act, which encompasses any service fee or additional charge related to borrowed funds or incurred debt, including processing fees, it is necessary to deduct TDS on processing fees charged by NBFCs under section 194A.
CAclubindia
