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Tds on interest paid to tata capital

12 May 2019

We have paid EMIs on finance availed from Tata Capital Finance inclusive of interest. TDS has not been deducted on the interest and has not been deposited for F/y 2018-19.

Query : Remedy available ?. Further in case of Azmath-Ulla vs ACIT, there is a ruling by ITAT that TDS need not be deducted if the NBFC is showing the interest in their returns. Any further development on the subject ?

Please comment.

An early reply will be highly appreciated.

Best Regards

Subhash

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2 Replies

Manoj Raturi (student-CA FINALS) (190 Points)
Replied 12 May 2019

You can ask nbfc to give a certificate declaring that the intrest charged has been shown in their income tax return. In future you should deduct tds on monthly basis.

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Zeal Bangdiwala (Partner at N. Gamadia & Co.) (363 Points)
Replied 13 May 2019

If you can get a certificate from NBFC (in Form 26A format as per Rule 31ACB) then you shall not be liable to deduct TDS and shall not considered as Assessee deemed to be in default. However, you will still be liable to pay interest u/s 201(1) for the default.