Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Tds on emi

kumar (student) (248 Points)

17 November 2020

Hello
we bought a vehicle in July 2020
and the relevant EMI amount is being auto debited from our current account.
now my question is how to deduct Tds on the emi?
we have not Deposited any tds till date on the interest part
pls help
any late fee payable?

Reply
Follow
Share

6 Replies

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 17 November 2020

If the vehicle loan is taken from bank or financial institution or other as specified in section 194A(3) then Tds is not applicable.

Need not deduct tax .So don't worry..

Upgrade to CAclubindia Pro. Subscribe Now!

kumar (student) (248 Points)
Replied 17 November 2020

Dear sir
we have received a letter from the financial institution (Sundaram finance) to deduct Tds on the emi .pls advise

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 17 November 2020

Kindly refer section 194A(3) where you get the list of payments of interest not liable to deduct tax .

If the payment is covered in the list then not liable.

JATINDER KUMAR (Accountant) (3662 Points)
Replied 17 November 2020

You need to deduct TDS @ 7.5% (Reduced Rate till 31.03.2021) on Interest portion

kumar (student) (248 Points)
Replied 17 November 2020

I need to apply for new TAN for our firm for tds deduction purposes.
how to apply for new TAN for FIRM .
and we have DSC on the name of our FIRM.
and what are the documents to be sent along with the acknowledgement ??

Upgrade to CAclubindia Pro. Subscribe Now!

jesal makwana (8 Points)
Replied 18 November 2020

You need to Pay TDS at 7.5% on only interest component which you will get from EMI Schedule. Then File quarterly return and submit TDS certificate and simple letter to Sundaram Finance to reimburse the TDS amount. They will reimburse the TDS amount. There are lot of NBFC which follows this practice.

1 Like