TDS matter

This query is : Resolved

Aniket Shavdia (Querist)
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04 January 2011 There is an assessee company who has its 100% subsidiary company in UAE.

The assessee has given loan to its 100% subsidiary company in UAE.

It has charged 10% interest on loan from its 100% subsidiary company in UAE.

Is 100% subsidiary company in UAE (or assessee company) liable to deduct TDS on interest paid to Assessee Company?

If yes, at what rate TDS would be deducted?

Please check the income tax rules of UAE because as per my information there is no levy of Income Tax in UAE.

Also kindly check DTAA between UAE and India.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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09 January 2011 Kindly read the local tax laws of UAE,as DTAA provides for deduction of 10%,but normally the DTAA or local tax laws which are beneficial to assessee prevail.