07 January 2015
Dear Experts
First of all
wish you very Happy new year :)
i m going to payment of interest of ECB loan payment to a foreign bank.
Tds rates given in below
as per DTAA rate -10%
as per IT act section 194LC-5%
so please suggest me which rate should i taken ? and why?
Thanks & Regards
Abhimanyu Shekhawat
abhimanyushekhawat1@gmail.com
07 January 2015
Even if DTAA rate is 10% if the provision of Income Tax Act 1961 (i.e. 194LC) is more beneficial the TDS rate applicable should be 5% only.
However you need to ensure that ECB loan payment in your case duly satisfies the conditions of section 194LC.
CAclubindia
