Tds on payment to bank

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Querist : Anonymous

Querist : Anonymous (Querist)

19 January 2016 Dear all,

We are taking facility of cash pop up from XXXX bank. for this i would required to pay Rs. 30000 one time and Rs. 15 per transaction. My question is can i cover this services of bank in 194J as technical service and Deduct TDS accordingly.??

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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19 January 2016 For Nationalised Bank TDS not Applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

19 January 2016 But where is written that nationalised bank is exempt or not applicable on such bank. please share legal base with me....

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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19 January 2016 Please go through the notification of PRESS INFORMATION BUREAU GOVERNMENT OF INDIA of dated 04-01-2013. It may be helpful to you in deciding about TDS.
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Arun Biyani

Arun Biyani (Expert)
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19 January 2016 No TDS If this payment is for some credit facility. Because then this payment is Interest.. Pls read section 2 (28) any payment made including service charges or any other fees is treated as interest. So TDS under section 194 (A) is applicable. However if you read section 194 (A), they specifically exempt any payment made to bank or banking companies. So the TDS is not applicable to any payment made to bank.

Querist : Anonymous

Querist : Anonymous (Querist)

19 January 2016 Mr. Arun Biyani Sir,

I know that interest or fee payment to bank is out of tds which is in connection of any credit facility etc. But in my case there is no such credit facility or whatsoever is being given by bank. They are just preparing MIS for us and club all our cash deposit in different cities of india into one account. Also I link below a reply made by Mr. Ram avtar singh in which he specifically said that fee or charges in connection with loan or credit facility are out of TDS as per definition of interest under section 2(28A). Please help us to better understand on it..
https://www.caclubindia.com/experts/tds-on-payment-made-to-bank-558120.asp

Arun Biyani

Arun Biyani (Expert)
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19 January 2016 Then you need to explore notification of PIB GOI of 04th jan.. it says cash management service charges are excluded from TDS deduction purview. Just see if your transaction falls under this category.

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Querist : Anonymous

Querist : Anonymous (Querist)

19 January 2016 Yes Arun Sir, Exactly my case fall under that notification.
Thank you

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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19 January 2016 Tds applicable to Nbfc,

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