Question ID : 268

TDS On contract

Dear all,

One of our client disburses loan to its employees. It has entered to an agreement with a bank that it will pay a fee of 1.25% of loan amount for perusg the loan document on behalf of them. The fee is payable as soon as advise is givenirresmective of, whether loan is sanctioned by our client or not. our client has also entered to agreement with the same bank to provide custody service of origal loan document on annual fee of RS XX per file. Can somebody reply me whether TDS has to deducted on this payment to bank. Whether on both the payment it is required to deduct tax.
regards
vikesh agrawal
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