16 September 2011
Please clarify us Kotak Mahindra Prime Ltd is a Non Banking Financial Company . In case, we had financed vehicle from said Company and Paid principal + interest. Whether TDS deducted on Interest payment
16 September 2011
If it is a banking company to which the Banking Regulation Act 1949 applies, TDS not required to be deducted. Otherwise deduct TDS on crossing the threshold limit of Rs 5000/- p.a. @ 10%
16 September 2011
Even IDBI Bank limited is registered under Companies Act. But Banking Regulation Act 1949 applies to it. So check whether Banking Regulation Act 1949 applies or not. I think the Banking Regulation Act 1949 will not apply to the above mentioned company.
16 September 2011
As per Section 194A of the Income Tax Act 1961, tax has to be deducted out of the interest payment made by any borrower to an NBFC at 10%.
16 September 2011
The operations of NBFCs are regulated by the RBI As per the RBI Act, a 'non-banking financial company' is defined as:- (i) a financial institution which is a company;
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