TDS

This query is : Resolved 

26 July 2010 Dear Sir/Madam,
I need to clarify one doubt regarding TDS on Interest.
i.e. If an Indian Company Received loan from a non resident (Individual or Foreign Company).Is it subject to TDS when it repay the Loan amount along with Interest?

S.Jegadeesan

26 July 2010 If resident borrowed money for the purpose of earning income in india then it would be taxable u/s 9 as income accrues in india.

therefore TDS is applicable subject to provisions of DTAA

also pl note that tds is applicable on payment or provision in books whichever is earlier and not on repayment

26 July 2010 Thanks for your reply. As per your reply The Rate of Tax is 15 %. But in case non-availability of PAN then 20 % will attract.Am I correct?.

S.Jegadeesan


26 July 2010 no for the purpose of non resident section 195 shall apply and it would be the rate as per finance act... so for companies it would be 30% + surchage if any + ec



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries