TDS RATE ON INTREST PAYMENT TO U.K BANK

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Ashish Bhatt (Querist)
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03 December 2010 Hello Sir/madam,
One of our client take a Term loan from Standared Chartered Bank from U.K.Our client is in India & they are paying intrest to U.K based bank from india. my question is what is the rate of TDS on such intrest which is payed by our client.
Please reply as soon as possible.

Thanks in Advance

Rajesh Kumar

Rajesh Kumar (Expert)
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04 December 2010 40% plus education cess. If payment is more than 1 Crore, surcharge is applicable.

Ashish Bhatt

Ashish Bhatt (Querist)
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04 December 2010 Sir I thnk its 10%. we get this rate from income tax website.

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Rajesh Kumar

Rajesh Kumar (Expert)
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04 December 2010 I wrote the normal rate under Section 195. In case of Double Tax Aviodance Agreement, if tax is required to be assesed as per Section 115A, it will be 10%.

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Ashish Bhatt

Ashish Bhatt (Querist)
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05 December 2010 yes sir we need to follow DTAA i think its also compullsary. thank you very much sir for your support.