TDS in case of payment made to non resident.

C.A. Parin Poojara (Chartered Accountant) (90 Points)

22 July 2010  

There is an assesee who had borrowed money for the purpose of consruction of factory in Rajkot (In India) from his brother who is non resident. And made payment of interest of Rs. 1 lacs without deduction of Tax at source. And even he had not claimed such interest as expenses rather he had capitalised such interest to the cost of factory as per the AS-16 "Borrowing Cost". than What is the consiqances of non dection of TDS under section 195?????????