U/s 194a

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2015 Kotak Mahindra Prime Ltd. is a subsidiary of kotak mahindra Bank.

Will tds U/s 194A be deduted on Vehicle Loan taken from Kotak Mahindra Prime Ltd ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 March 2015 Interest on loan is covered to TDS u/s 194A of the Income tax Act. However, as per Sec.194A(3)(iii), interest paid to any banking company to which Banking Regulation Act, 1949 applies is not subject to tax deduction.

In the given case though Kotak Mahindra Prime Ltd is a subsidiary of Kotak Mahindra Bank it is to be seen whether whether the Banking Regulation Act, 1949 is applicable to Kotak Mahindra Prime Ltd. I dont think it will be applicable and therefore TDS is required to be deducted.