Nil tds' be extended to the nbfcs as well under sec. 194a

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2014 Dear Experts,
Please clarify the status of "Nil TDS' to the NBFCs under Sec. 194A" since I am facing a big difference of opinion of our current auditor and previous auditor.
Please make it clear on urgent basis with notification.

Thanks in anticipation.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 November 2014 The certificate issued by the tds ao clearly states the scope of nil tds certificate. Where is the scope for dispute

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2014 Dear Nikhil Sir,

The issue is as follows:
Our previous auditor has mentioned in his TAR that the company is liable to deduct TDS on interest part of secured loan from NBFC.
But our current auditor is opposing the same liability and asking to pass reverse entry for the same and he would mentioned the same fact in his current TAR....
WE are clueless??

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 November 2014 If the nbfc has given you the nil deduction certificate, then whether you deducted the tax or not, no negative comment can be made in the audit report. Auditor is wasting his time