Tax deducted at source

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2012 A Company is paying a processing fess to a NBFC Company in respect of providing a factoring limit.

I want to know in whether TDS will be deducted or not???

If deducted in which Head?

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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01 February 2012 TDS is applicable.

As a interest TDS to be deducted

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Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2012 Why it should be treated interest???
It is a onetime charges taken by them.

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Yogesh Agarwal

Yogesh Agarwal (Expert)
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02 February 2012 It will not be deducted u/s 194A....

In one of my client case the bank itself said to deduct the TDS but did not say the head under which deduction to be made. We were confused under which head deduction should be made..?

We came up with two section 194H (Payment of commission and brokerage) and 194J (Professional Services)... Then we came to the conclusion that it should be deducted under section 194H...

Other opinion of the expert awaited.

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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02 February 2012 Agree with Yogesh Agarwal