I want to know whether a company is liable to deduct TDS on payment for interest made to TATA Capital or Sundaram Finance for loan taken for financing Vehicle it own if interest during the year exceed Rs. 10000.00
01 December 2011
The liability to deduct TDS on the interest arises if interest payment exceeds Rs.10000 p.a. However, there is no liability to deduct TDS if interest payment is made to banks or public financial institutions. If your have financed it by an NBFC then you should deduct TDS as per rules.
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