TDS

This query is : Resolved

S.Jegadeesan (Querist)
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26 July 2010 Dear Sir/Madam,
I need to clarify one doubt regarding TDS on Interest.
i.e. If an Indian Company Received loan from a non resident (Individual or Foreign Company).Is it subject to TDS when it repay the Loan amount along with Interest?

S.Jegadeesan

srinath

srinath (Expert)
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26 July 2010 If resident borrowed money for the purpose of earning income in india then it would be taxable u/s 9 as income accrues in india.

therefore TDS is applicable subject to provisions of DTAA

also pl note that tds is applicable on payment or provision in books whichever is earlier and not on repayment

S.Jegadeesan

S.Jegadeesan (Querist)
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26 July 2010 Thanks for your reply. As per your reply The Rate of Tax is 15 %. But in case non-availability of PAN then 20 % will attract.Am I correct?.

S.Jegadeesan

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srinath

srinath (Expert)
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26 July 2010 no for the purpose of non resident section 195 shall apply and it would be the rate as per finance act... so for companies it would be 30% + surchage if any + ec