Processing fees paid to bank

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Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2013 If Processing Fees paid to bank is liable t0 deduct TDS under which section.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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05 August 2013 It is not liable for TDS.
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Hemant Kumar

Hemant Kumar (Expert)
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05 August 2013 Processing fee is covered under the meaning of interest as defined u/s 2(28A) of the IT Act.

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Hemant Kumar

Hemant Kumar (Expert)
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05 August 2013 definition of interest as stipulated u/s 2(28A) "interest" means interest payable in any manner in respect of any money borrowed or debt incurred (including deposit, claim or other similar rights or obligation) and included any service fee or other charge in respect of the money borrowed or debt incurred or in respect of any credit facility which has not been utilized.

and there is no requirement to deduct TDS from payment of interest to any Bank.