withholding tax

This query is : Resolved

BNK REDDY (Querist)
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09 May 2011 we are proposing to open letter of credit in US $ in Singapore for making payments to overseas supplier. The bank which is opening LC is also offerin 3 year buyer credit facility.

The interest payable to the bank in singapore for buyers credit whether it attracts WHT?
whether payment of other associated charges also need to be subjected to WHT

CA Navin Jain

CA Navin Jain (Expert)
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09 May 2011 IF FOREIGN BANK IS A INDIAN BANK BRANCH THEN WHT IS NOT APPLICABLE.AND TDS WOULD ALSO NOT DEDUCTED

IF BANK IN FOREIGN BANK WHICH COME UNDER FOREIGN BANK REGULATION AND FINANCIAL INSTITUTE THAN WHT IS APPLICABLE

IN THE DTAA, TAX RATE IS NIL OR LOWER IF YOU PAID INTEREST TO FOREIGN BANK WHICH COME UNDER FOREIGN BANK REGULATION AND FINANCIAL