Loan taken on Car

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Anjan S. Mehta (Querist)
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25 February 2008 Sir,
I am working in a Pvt co. & our co has borrowed loan from Kotak Mahindra agnst 2 car (Mercedes Benz) for 3 years. In this regards pls specify me loan a/c head in a/c book & tds is applicable on int paying to KMPL

Regards,
Anjan S Mehta

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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25 February 2008 LOAN ACCOUNT UNDER THE HEAD SECURED LOAN AND TDS IS APPLICABLE ON INTEREST YOU ARE PAYING.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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25 February 2008 no tds on interest .interest paid to banks and financial istitutions are exempted
you will open a secured loan agaist car
loan a/c

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CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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25 February 2008 SINCE KOTAK MAHINDRA YOU HAVE MENTIONED IS NOT A BANK AND IT IS NBFC THEREFORE LIABLE TO DEDUCT TDS

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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25 February 2008 TDS is applicable if the lender is NBFC.

R.V.RAO

R.V.RAO (Expert)
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05 March 2008 LOAN HEAD IS SECURED LOAN ( LOAN SECURED BY THE ASSET OF THE COMPANY).FORM 8 NEEDS TO BE FILED IN ROC AS THIS IS A CREATION OF CHARGE AGAINST COMPANY'S FIXED ASSETS.
TDS NEEDS TO BE DEDUCTED IN VIEW OF KOTAK BEING AN NBFC .TDS DEPOSIT TO BE MADE AFTER RECOVERY OF TDS AND RETURN ALSO NEEDS TO BE FILEDAND TDS CERT. ALSO NEEDS TO BE ISSUED.
R.V.RAO