Sec 195 or sec 194a

This query is : Resolved

swasti (Querist)
Follow

07 September 2012 A company obtained a loan from a NRI in Indian rupee by cheque and is paying interest for the same in Indian rupee & depositing in Indian Bank A/c of NRI. TDS is to be deducted under which section - 194A or 195? Also whether NRI would be eligible to claim TDS?

CA Navin Jain

CA Navin Jain (Expert)
Follow

07 September 2012 its depend on the PAN no. provided by him.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
Follow

30 November 2012 First of all Indian Company can't take loan from NRI(if the money has been reptriated from outside India).

Also the TDS shall be @ 30.9% as per sec. 195 read with Finance Act.

Anuj
femaquery@gmail.com

Upgrade to CAclubindia Pro. Subscribe Now!