Whether NBFC are required to deduct TDS???
IS there any exemption related to deduction of TDS???
CA Shweta Purswani (Practicing Chartered Accountant ) (417 Points)
17 April 2013Whether NBFC are required to deduct TDS???
IS there any exemption related to deduction of TDS???
AGNIHOTRAM RAM NARAYANA
(JR EXECUTIVE)
(119 Points)
Replied 17 April 2013
dear shewta,
if the payments falls in specified sections 192, 193 and 194 . every company, individual, huf, firm should deduct tds other wise expenditure will not be allowed.
for your reference snap shot sections were appended here with
regards,
ram narayana agnihotram
CA D R P
(Chartered Accountant)
(313 Points)
Replied 17 April 2013
I think you want to ask something like "is payment to nbfc as interest is subject to tds by payer if the nbfc is a payee??"
Answer is Yes...
But, controversy is that when banks are the payee then no tds is required to be deducted!!
So, it is a quite unfair provision... for nbfcs...
CA Shweta Purswani
(Practicing Chartered Accountant )
(417 Points)
Replied 18 April 2013
Sory...Actualy my query was that If NBFC Borrows the amount in form of loan or whatever name called, then Whether TDS of NBFC will be deducted??
AGNIHOTRAM RAM NARAYANA
(JR EXECUTIVE)
(119 Points)
Replied 18 April 2013
dear shewta,
yes u have to deduct tds on interest payment if the interest payment crosses limit of 5000/- @ 10% .
regards,
ram narayana agnihotram
CA Shweta Purswani
(Practicing Chartered Accountant )
(417 Points)
Replied 19 April 2013
thanxxx a lot ram narayan sir ji
Vijay Shankar
(Regional Accounts Manager)
(80 Points)
Replied 20 April 2013
Dear Shwetha,
If you are paying interest to any body other than specified persons like banks, financial corpoaration, TDS is applicable.
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