Whether TDS has to be deducted incase of payment of interest to financing companies like TATA capital for retail loans like car loans etc?.
7 Replies
CA.Varalakshmi.M
(Manager-Finance)
(482 Points)
Replied 29 May 2012
As it is a Private finance company you need to deduct TDS u/s 194 A @ 10% if the payment of interest in a Year exceeds Rs.5000/- .
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 29 May 2012
Yes...go ahead and deduct tax @ 10% as per Sec 194A
jashan
(CA)
(30 Points)
Replied 29 May 2012
But these financial companies take no deduction certificate or lower deduction certificate from Income tax deparment. U can ask from these companies and deduct TDS accordingly. and pl insure whether the deductor is liable for deducting TDS or not
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 30 May 2012
YES, TDS IS TO BE DEDUCTED U/S 194A... @ 10%
IF AMOUNT IS EXCEEDING RS 5000.00
Anurodh Bhanbheru
(Article Clerk)
(31 Points)
Replied 30 May 2012
If the amount exceeds Rs.5,000/- then TDS @ 10% must be deducted u/s 194A
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