TDS Deduction

This query is : Resolved

Hema Desai (Querist)
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20 May 2008 Hi
I need to know where TDS is to be deducted in following case or not?
NRI has invested money in India as Loan to a private limited company
He never comes to India and is settled in US
Whether Indian Company should deduct TDS on Interest payable to him ?
If yes at what rate and Under which section?
How do we give him TDS certificate? and how do we update it in TDS Return those details?
If no than is DTAA benefit available?
If DTAA is applicable what kind of paper work is required?

Its very urgent kindly reply ASAP

Thanks and Regards

Hema Desai

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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20 May 2008 Yes the company has to deduct tax u/s 195.
Please see the chart for rates.
Certificate can be posted to him,and include it as we do normally. Only thing is PAN will not be obviously available, but still can be included.