tds on interest

This query is : Resolved

sunil (Querist)
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08 July 2010 our pvt. ltd. company was dealing in shares in 2009-10.
the broker charged interest of rs. 800,000/- from us on due from us.

are we liable for TDS.
if yes plz give any ref. if possible

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 July 2010 Yes. If your file is under tax audit you will have to deduct TDS u/s 194A.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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08 July 2010 You are liable to deduct tax u/s 194A of the Income Tax Act whether you fall under Tax Audit or Not.

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sunil

sunil (Querist)
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08 July 2010 but we are paying to a financial company

sunil

sunil (Querist)
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08 July 2010 our broker is religare finvest

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 July 2010 Sorry i made that tax audit point as i overlooked pvt. ltd. and thought it is for individual.
Anyways since you are paying interest it will attract TDS u/s 194A. It is applicable even if you pay to financial company.