Tds on interest of vehicle loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2016 Dear Experts,
Weather TDS is to be deduct on
interest on bike/car loan finance by
bajaj finance, HDFC bank, Etc.
Plz guide......

Regard
Mohit bansal

Gokul Sharma

Gokul Sharma (Expert)
Follow

27 April 2016 INTEREST Charged by banks , financial institution are excluded from scope of TDS. YOU ARE NOT REQUIRED TO DEDUCT TDS

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2016 Sir can you please provide any case law
Section, clause Not to deduct TDS on this
Said payment of intetest,

Upgrade to CAclubindia Pro. Subscribe Now!

Kaushik Joshi

Kaushik Joshi (Expert)
Follow

27 April 2016 Dear Anonymous, In your eg. Tds required on interest paid to bajaj finance but not on interest paid to bank. This is because bajaj finance is an nbfc and hdfc is covered under banking regulations act. The section is ample clear in this respect.

Kaushik Joshi

Kaushik Joshi (Expert)
Follow

27 April 2016 section 194A for your perusal.

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2016 Dear joshi ji
Bajaj finance has denied to Deduct
TDS plz clarify this issue also Mr. Amol
has advised that No need to deduct TDS
On payment to bajaj finance by way of
Interest