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2 maj 2020 · Whether TDS is leviable u/s 194J or 194A of Income Tax Act 1961 on processing fees charged by NBFCs? Analysis and discussion: Under section 194J of Income Tax Act 1961, Tax is required to be deducted if payment made to resident in respect of fees for professional or technical services.
- TDS on Processing fees and other charges paid to NBFC's for Borrowing Loan
To avoid controversies, it is best to adopt Section 194J....
- Tds on loan processing fees - Income Tax | TDS - CAclubindia
In my opinion "processing fees" will fall under Section 194J...
- TDS on Processing fees and other charges paid to NBFC's for Borrowing Loan
3 wrz 2024 · To avoid controversies, it is best to adopt Section 194J. But if you are a company or individual/firm falling under tax audit category, you can deduct TDS u/s 194A on processing charges along with the interest payments to the NBFC during the year.
22 maj 2013 · In my opinion "processing fees" will fall under Section 194J payment towards technical or professional services. The Government has notofied certain services u/s 194J as "Professional Services" but the banking services is not found there.
If TDS is required to be deducted by any entity on interest then it must be deducted on loan processing fee or any other service fee. Section 194A of Income Tax Act, 1961 – TDS on Interest (other than interest on securities) Section 194A explains that Any person, not being an individual or a Hindu Undivided Family who is responsible for ...
29 maj 2019 · Processing fees is an additional non-refundable charge that need to be paid when applying for Loan. It is a charge that passes on Expenses to the borrowers for getting documentation, evaluation, work and record of loan repayment etc. The amount of processing fees varies from loan to loan.
29 wrz 2018 · Loan is subject to payment of processing fees. Processing fess is paid to borrow the money and not as compensation after borrowing the money. Hence Processing Fees is not subject to TDS. !!
In case of loan arrangements, banks may charge management / processing fee to the borrower. A question arises whether such fees would qualify as ‘interest’ or ‘FTS’ under the provisions of the ITA or the relevant tax treaty and subjected to tax accordingly.
