Whom to issue tds certificate

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pawan ashani (Querist)
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19 August 2011 HI SIR,
a co takes a loan from icici BANK -THA BAHAMAS(foreign branch of icicc bank) thru icicibank-Mumbai branch..co have a/c with Mumbai branch,agreement of loan clearly provides that principal & interest for the loan is to be paid to BAHAMAS thru Mumbai branch.our co has deducted tds on interest & now co wants pan no of that branch but Mumbai branch manager is saying that issue tds certificate on the name of icicc bank-Mumbai only.India has DTAA with the Bahamas.

so what to do?my senior have opinion of deducting tds at higher rates for not providing pan no.

please through light on above issue.

U S Sharma

U S Sharma (Expert)
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19 August 2011 as the interest is paid by you in INR to indian counterpart, you can use their PAN number.

pawan ashani

pawan ashani (Querist)
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19 August 2011 S ANY PROVISION IS THERE?CO IS PAYING INTEREST TO FOREIGN BRANCH THROUGH MUMBAI BRANCH,MUMBAI BRANCH CONVERT RUPEES INTO DOLLARS AND PAY TO THAT BRANCH.IF WE ISSUE TDS CERTIFICATE TO LOCAL BRANCH IT WILL BE ITS INCOME(CREDIT OF TAX PAID).

please through light on above issue

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pawan ashani

pawan ashani (Querist)
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19 August 2011 how we give credit to local branch?

Sidhardh

Sidhardh (Expert)
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20 August 2011 Mr. U S Sharma is right.

When the Mumbai branch of ICICI is ready to take TDS certificate, you can issue the same to them without any doubt.

There will not be any problem for you since, the answer is in main question itself i.e., Bahmas has DTAA.

If you want any supporting document for issuance of TDS certificate to ICICI Mumbai branch, then ask them for a letter regarding the same.

pawan ashani

pawan ashani (Querist)
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20 August 2011 THANK YOU SIR.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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21 August 2011 A branch doessn't have an separate entity different from its Head Office.

From taxation view point the whole profit of any bank(that includes consolidation of all Branches accounts in the Head Office )is chargeable to tax.

So in present case the PAN of ICICI Bank shall serve the purpose and TDS Certificate shall be issued in favor of ICICI Bank only.

Also India doesn't have ant DTAA with Bahamas.

Anuj