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Tads applicability

AshokBhambhani (Accountant) (33 Points)

22 June 2015

We are arranging buyers credit against import collection bills from foreign banks. Is it necessary to deduct TDS on the portion of interest payment of buyers credit??

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4 Replies

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 22 June 2015

In this case who is arranging buyers credit loan. Directly from you or from your bank loacated in India.

AshokBhambhani (Accountant) (33 Points)
Replied 22 June 2015

Our bank Sbi in India send the LOU for arranging buyers credit to foreign bank. So its arranged through our bank in india we can say

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 22 June 2015

Ok, that means, your bank will arrange fund on behalf of you and you are liable pay the same to your bank not to foreign bank. Then TDS is not applicable as there no direct trasaction between you and the bank who giving buyers credit loan.