TDS on interest paid to NBFC U/s 194A

This query is : Resolved

munna (Querist)
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22 July 2009 Can any one suggest me, whether interest paid to NBFC is liable to TDS.

During the year a firm was paid Rs 250000.00 as interst to TATA Finance Ltd .
whether Firm should deduct TDS on Rs 250000.00 U/s 194A

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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22 July 2009 As per Section 194A(3)(iii)(e), we need not deduct tax at source.

Section is reproduced here.

The provision of TDS shall not apply to such income credited or paid to any company or co-operative society carrying on the business of insurance.

NISHIT A. DOSHI

NISHIT A. DOSHI (Expert)
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23 July 2009 interest paid to NBFC is definetly liable to tds u/s 194A.

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