TDS on Interest

No TDS for 

1) any payment to state / centtal govt as taxes or interest or penalty

2) any indian bank for interest paid / bank charges 

in both cases no tds

There is no liability on your side to deduct TDS on the payment of Interest on Sales Tax / VAT.

Regards,

Devendra K

You cannot and should not deduct tds in both the cases ,those parties are specially exempted

NO TDS Requirement on both the cases

No need to deduct Tax.

No requirement of TDS on interest on VAT / Salestax

Not to deduct TDS on loan to Banks

But make sure that this bank is nationalised bank or it is banking company which is required to follow RBI rules.

Thus if there is NBFC then TDS is required on interest of loan.

No TDS on any late payment made to  government for Sales tax

Thanks & Regards

agree with all of u same 

TDS need not to be deducted if paid to:

Any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies, or any co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank),

but M not very much sure for second instances asked by u i.e. interest paid due to sales tax demand.

but i think TDS need not to be deducted while making payment to any government authority.

No need to pay any TDS on Both Cases

Agree that No TDS is required for both the cases because:-

1. No TDS is required for the interest paid on sales tax demand as it is raised by the Govt. and it will be covered u/s 196
2. No TDS when the interst is paid to Bank for auto loan.  As interest paid to banks including co-operative banks which carries on the banking business is exempt u/s 194A

TDS not at all require in both the cases