TDS on Interest on Funds brought in by NRI Partner

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2011 I would like to know that is TDS to be deducted on interest on funds introduced by NRI partner in Firm if yes than at what % is to be deducted

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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07 June 2011 IT APPEARS THAT THE FUNDS ARE INTRODUCED AS CAPITAL CONTBN AND INTEREST IS PAID IN CAPACITY OF PARTNER
IF YES THEN NO TDS BY VIRTUE OF SECTION 194a(3)(III)

CA MANOJ GUPTA
JODHPUR
09828510543

Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2011 The amount is over & above the funds introduced as capital contribution in the capacity of partner in the partnership firm it is attracting 10% interest p.a.

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CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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08 June 2011 TAX WILL HAVE TO BE DEDUCTED AT 30.9 PERCENT