Dear All,
I have a confusion, pl clerify with your valuable suggestions and reasons.
Q. Whether Loan Processing Fee, Bank Guarantee Commission an Similar other payments made to any Bank are subject to TDS provisions?
Thanks
CA SHABIR (CA) (336 Points)
30 November 2011Dear All,
I have a confusion, pl clerify with your valuable suggestions and reasons.
Q. Whether Loan Processing Fee, Bank Guarantee Commission an Similar other payments made to any Bank are subject to TDS provisions?
Thanks
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 30 November 2011
according to me it is not but wait for expert's comments
Manas Arora
(Possibility Manager)
(98 Points)
Replied 30 November 2011
TDS would be applicable on Loan Processing Fees u/s 194A by considering it as Interset and deduction for the same is allowable u/s 24(b) of the income tax act.
But no TDS on Bank Guarantee comission..
Thanks..
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 30 November 2011
How can the Bank procesing fee be considered as interest. It's a one time payment & hence not TDS & deduction u/s 24(b) will be available. Loan processing fee is paid to teh bank to verify if you are eligible for the loan with the required documents, after whihc your loan gets sanctioned & you start payineg interest on the amount sanctioned.
So how can loan processing fee be considered as interest??
No TDS on Bank gurantee commission.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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