TDS under Section 194A

Prashantha Kumar (Chartered Accountant) (38 Points)

25 November 2008  

Dear Friends,

My cleint is paying interest to Reliance Capital Ltd and Kotak Primus ltd. I have the opinion that the TDS needs to be deducted on interest payment as it exceeds Rs 5000.  Since these companies are not listed in 194 A as financial institutions it has to be deducted.

Can any body get citation for the same from courts. If i am wrong please clarify

Thanks