Withholding tax

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Kulbhushan Prasad Gupta (Querist)
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04 May 2012 our client has to remitt. interest with principal amount to Afrasia bank, Mauritius.
Please advise reg. withholding tax with circular no. & date

Amol S Joglekar

Amol S Joglekar (Expert)
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04 May 2012 TDS on interest is to be done. Contact a chartered accountant, he will issue form 15CA after verifying your payment.

CA.Pankaj Dubey

CA.Pankaj Dubey (Expert)
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04 May 2012 withholding is applicable on Interest portion and not on Principal amount.
you need to issue two separte form 15CA and Form 15CB for Interest and principal.

Rate of Tax - If the Bank have PAN in India, then DTA rate of applicable rate which ever is lower.

If bank do not have the PAN - rate will be 20% (As per section 206AA.

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