TDS on Reimbursement of Bank Charges

This query is : Resolved

Sunny (Querist)
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22 April 2021 M/s XYZ Pvt. Ltd., in the normal course of business, obtain funding from bank in the form of fund based as well as non fund based. Bank levy bank charges, processing fees, etc. On this TDS is not deductible.

Now, say M/s XYZ Pvt. Ltd. is in requirement of more funds and bank is not funding the requirement. So M/s XYZ Pvt. Ltd. goes to say M/s PQR Pvt. Ltd. who has bank facility available. They enter into some common agreement wherein PQR Pvt. Ltd. will provide required bank facilities to M/s XYZ Pvt. Ltd. and in turn M/s PQR will charge some amount to M/s XYZ (the amount they would have paid to Bank if Bank would have given facility).

Now, this will be Expense under books of M/s XYZ.. Whether on this expense TDS is to be deducted?