07 August 2009
Kotak Mahindra Prime Ltd is a subsidiary of Kotak Mahindra Bank Ltd.Whether TDS has to be deducted on gross interest debited by bank directly in bank statement?
Is there any exemption from TDS for payment of interest to subsidiary of bank? Because no TDS applicable U/s.194A on interest payment to bank.
08 August 2009
Kotak Mahindra Prime Ltd., is not a Banking Company and hence the referred exemption is not applicable in the instant case, whether the payee is a subsidiary of a bank or not.
For the reason cited by you, no need to deduct TDS on interest debited by Bank.
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