Section 194aa urgent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2018 Dear Experts,
While adducting TDS on NBFC u/s 194A for interest. Whether TDS also to be deduct on file charges and processing fees if yes under which section.

Thanks
ASAP

CA Suresh Jain

CA Suresh Jain (Expert)
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28 May 2018 In my opinion TDS is not deductible on amount other than the interest amount

Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 May 2018 have to disagree. refer the definition of interest -

section 2(28A) - "interest" means interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised ;

It includes service fees etc too

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Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2018 Sir if file charges and legal fees is charged even then whether TDS is to be deduct on the same

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 May 2018 yes, it should be...

CA Suresh Jain

CA Suresh Jain (Expert)
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29 May 2018 Mr. Nikhil is absolutely right. My apologies for missing this. According, TDS is to be deducted on amount referred by you

Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2018 OK sir on loan sanction file charge, processing fees, interest is debited. Pls let me know whether TDS u/s 194A@10% be deducted for all three expense I.e. file charge, processing fees, interest, or different section will be applicable for TDS deduction on file charge and processing fees

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 May 2018 it should be charged on all these expenses under 194A itself.

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