Tds on interest paid to bajaj finance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2016 Dear Experts
A bike was financed by bajaj finance pls tell me weather TDS is to be deduct on interest amount paid to bajaj finance?

Regards
Amit Jaiswal

Sandeep Dharar

Sandeep Dharar (Expert)
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01 December 2016 No, TDS is not applicable on payment to any financial institution and Govt.

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2016 Dear sandeep sir.
I think bajaj finance is NBFC therefore
TDS shall be applicable on interest paid to the same. However if still your view is differ then pls quote any relevant section/clause/case law

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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02 December 2016 NBFC you have to deduct Tds on interest payable.

Sandeep Dharar

Sandeep Dharar (Expert)
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02 December 2016 Yes, TDS is applicable u/s 194A, if the amount exceeds the limit mentioned in the section (10K) @10%. I mistakenly taken it a financial institution.