Articled Assistant
170 Points
Joined March 2010
If a third party provides loan on the name of a Director then the company can utilise the funds only as an unsecured loan received from the Director.
Hence if any interest paid by the director to the lender the company is not liable to any TDS.
But if the company pays any interst to the director then the provision u/s 194A is applicable.
Thanks & Regards
Ram.