Tds on payment to banks
This query is : Resolved
17 November 2011
Whether the TDS is deductible on payment of Upfront Fee, Processing Fee & Syndication Charges to a Bank.
Our Client has recently taken a loan from a Bank and the syndication is in process. I am able to find one circular which says that no TDS would be deducted on interest payment to banks, but what about payment of Upfront Fee, Processing Fee & Syndication Charges, whether TDS is deductible or not ?
Our Client has recently taken a loan from a Bank and the syndication is in process. I am able to find one circular which says that no TDS would be deducted on interest payment to banks, but what about payment of Upfront Fee, Processing Fee & Syndication Charges, whether TDS is deductible or not ?
17 November 2011
According to me, the terminology may be different, but in principal they are finance charges only.
Hence TDS need not be deducted on such payments made to Banks!
Hence TDS need not be deducted on such payments made to Banks!
17 November 2011
In view of section 2(28A) such payments are covered under section 194A(3)(iii)(a) and hence TDS provisions does not attract.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Tds on building rent monthly
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
