12 August 2009
Effective 1/10/09 every individual has to deduct TDS on payments to contractors. Are charges debited by banks to our account payment for contracts. Normally banks debit to us charges for following:- 1) For not maintaining minimum balance 2) Transaction charges on usage of debit card or credit card for making online purchase of say tickets used for business or purchase of petrol. 3) Courier charges on collection of documents or cheques.
For the courier charges that are hefty on foreign bills, do we have to consider it as a contract between us and the bank or between us and the various courier companies that banks use. The courier companies issues bill in name of bank and banks debit our account per export bill.
Would the banking service be regarded as a single contract at time of opening account or would each transaction be an individual contract?
12 August 2009
I was just pondering over courier charges paid to banks. Normally when Bank pays to Courier company, they would be deducting the TDS applicable for contracts. They recover the courier charges either by debiting our account or deducting it from proceeds of our bill. Do we have to again deduct TDS on these courier charges and whether we have to deposit it into PAN of Bank or Courier Company. Logically Bank is acting as our agent and is paying the courier charges on our account. Normally should this be a banking charges or courier charges in our p and l account?
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