HI FRIENDS,
I am doing one tax audit, inwhich they are paid around 40lacs to bank towards processing fees , whether company is liable to deduct TDS on the above amount, if yes under which provision, kindly reply me soon.
5 Replies
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 18 September 2009
Sanjaya
There is no TDS becoz , ther is specifically exclusion of BANKING COMPANY is section 194A . So please refer section.
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 18 September 2009
ANd if you talked about processing fees then it is specifically exclude from the purview of definition of Interest as per Income tax act...........
Sunil
(Trader)
(2611 Points)
Replied 18 September 2009
Section 194 J. Technical Services. Technical services includes managerial and secretarial service. There is no specific exclusion for banks in section 194J. Only in 194A. Therefore 10% + surcharge etc. if over 20,000 per annum.
Rajeev
(www.rkmco.com)
(985 Points)
Replied 19 September 2009
194A excludes banks , loan processing fees is included in Interest u/s 2(28A) , so no TDS ...Question of 194J doesnt arise , as loan processing fees is interest ..i think there is a Sc judgement on this 224 ITR 551
CA. SUDHARSAN K G
(Chartered Accountant)
(472 Points)
Replied 19 September 2009
No Doubt, Banking Companices are exempted from this area.
If there is a provision like that then bankers have to open a department for collection of !6a, because that much of Certificates it will have.
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