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 ?
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!
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