'Loan processing fee' paid to bank would be treated as interest; not liable to sec. 194A TDS

The ITAT Mumbai Bench held as follows:

• In terms of section 194A, TDS provisions will not apply to loan processing fees paid to any banking company to which Banking Regulations Act, 1949 applies
• Guarantee fee paid to bank is not in nature of commission or brokerage under ambit of section 194H as there exists no principal-agent relationship.

Posted by aicas at Monday, September 19, 2016

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Labels: Direct Taxation