TDS ON INTEREST PAYMENT MADE TO NON RESIDENT

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2010 Hi,

Can you please specify TDS rate (FY-2009-10 & 2010-11) IN CASE INTEREST PAYMENT IS MADE BY DOMESTIC COMPANY TO NON RESIDENT INDIVIDUAL AND FOREIGN COMPANY?

I believe SEC 195 is applicable for above TDS deduction

Pls clarify

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 May 2010 YES SEC 195 WILL BE APPLICABLE FOR ABOVE.
TDS TO BE DEDUCTED @ RATE MENTIONED IN DTAA IF ANY. OTHERWISE NORMAL TAX RATE (30.9%)

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CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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16 July 2011 Loan from Foreign company is covered under stringent guidelines called "ECB" guidelines.

Please check whether you have complied with the said guidelines.

Also loan from NRI is not permitted to be taken by INDIAN COMPANY on repatriation basis.The same is only permitted under non repatriation basis.Also the period cannot exceed 3 years.Also the said funds should not be used for real estate activities.

Anuj
+91-9810106211

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