Tds on interest paid to foreign co.

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rathdinesh (Querist)
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16 February 2013 one of my client is producer company take a unsecured loan from foreign company, now the payment of interest is due in march, I want to know about TDS deduction.
The foreign company does not have any office in India.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 February 2013 kindly refer the DTAA between India and the company's residence country .

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CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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17 February 2013 I presume that the FEMA guidelines have been followed before taking the unsecured loan.

The rate as per Income tax Act is 20.6%,however any beneficial provisions as per Treaty may apply.

Anuj
femaquery@gmail.com

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rathdinesh

rathdinesh (Querist)
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21 February 2013 Sir, further I want to clear that This Indian company has taken ECB from company based at USA and company has completed all the ECB guidelines.
This USA based Company does not have any office in India.
Is TDS @20.60% or 15%(as per DTAA) or 0% as the foreign company have no PE in India.