Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

TDS on Interest

Nitin Bhatt (Sr.Manager Accts & Finance) (80 Points)

28 April 2011

DEAR ALL,

PLS ADVICE WHETHER TDS ON INTEREST APPLICABLE IF INTEREST PAID DUE TO SALES TAX DEMAND

& ALSO IS THERE ANY TDS APPLICABILITY IF WE ARE PAYING INTEREST ON AUTO LOAN TO BANK/INTEREST TO BANK AGAINST C.C LIMIT

THANKS,

NITIN

Reply
Follow
Share

14 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 28 April 2011

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

1 Like

(Guest)

in both cases no tds

1 Like

Devendra (Chartered Accountant) (4775 Points)
Replied 28 April 2011

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

Regards,

Devendra K

siva thunder (article student) (253 Points)
Replied 28 April 2011

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

neha AWASTHI (hh) (230 Points)
Replied 28 April 2011

NO TDS Requirement on both the cases

Pavan Bharadwaj (Practicing Chartered Accountant) (353 Points)
Replied 28 April 2011

No need to deduct Tax.

CA Chintan Vyas (Chartered Accountant) (116 Points)
Replied 28 April 2011

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.

Arun A P (Learning thro experience) (64 Points)
Replied 28 April 2011

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

Thanks & Regards

sandeepverma (don't make exuse for study) (304 Points)
Replied 29 April 2011

agree with all of u same

Manoj jain (Intern) (535 Points)
Replied 29 April 2011

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.

Atul Agrawal (C.A.Student) (22 Points)
Replied 30 April 2011

No need to pay any TDS on Both Cases

srinivasan (service) (898 Points)
Replied 30 April 2011

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

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
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

KIYOSH (TAX CONSULTANT) (332 Points)
Replied 30 April 2011

TDS not at all require in both the cases

sonia (accountant) (25 Points)
Replied 12 October 2012

Particulars	1-Apr-2012 to 30-Sep-2012
	Transactions		Closing
	Debit	Credit	Balance
Opening Balance		2583879	2583879.00 Cr	2583879
1-Apr			2583879.00 Cr	2583879
2-Apr			2583879.00 Cr	2583879
3-Apr			2583879.00 Cr	2583879
4-Apr			2583879.00 Cr	2583879
5-Apr			2583879.00 Cr	2583879
6-Apr			2583879.00 Cr	2583879
7-Apr			2583879.00 Cr	2583879
8-Apr			2583879.00 Cr	2583879
9-Apr			2583879.00 Cr	2583879
10-Apr			2583879.00 Cr	2583879
11-Apr			2583879.00 Cr	2583879
12-Apr			2583879.00 Cr	2583879
13-Apr			2583879.00 Cr	2583879
14-Apr			2583879.00 Cr	2583879
15-Apr			2583879.00 Cr	2583879
16-Apr			2583879.00 Cr	2583879
17-Apr			2583879.00 Cr	2583879
18-Apr			2583879.00 Cr	2583879
19-Apr			2583879.00 Cr	2583879
20-Apr			2583879.00 Cr	2583879
21-Apr			2583879.00 Cr	2583879
22-Apr			2583879.00 Cr	2583879
23-Apr			2583879.00 Cr	2583879
24-Apr			2583879.00 Cr	2583879
25-Apr			2583879.00 Cr	2583879
26-Apr			2583879.00 Cr	2583879
27-Apr			2583879.00 Cr	2583879
28-Apr	2000.00		2581879.00 Cr	2581879
29-Apr			2581879.00 Cr	2581879
30-Apr			2581879.00 Cr	2581879
1-May			2581879.00 Cr	2581879
2-May			2581879.00 Cr	2581879
3-May			2581879.00 Cr	2581879
4-May			2581879.00 Cr	2581879
5-May			2581879.00 Cr	2581879
6-May			2581879.00 Cr	2581879
7-May			2581879.00 Cr	2581879
8-May			2581879.00 Cr	2581879
9-May			2581879.00 Cr	2581879
10-May			2581879.00 Cr	2581879
11-May			2581879.00 Cr	2581879
12-May			2581879.00 Cr	2581879
13-May			2581879.00 Cr	2581879
14-May			2581879.00 Cr	2581879
15-May			2581879.00 Cr	2581879
16-May			2581879.00 Cr	2581879
17-May			2581879.00 Cr	2581879
18-May			2581879.00 Cr	2581879
19-May			2581879.00 Cr	2581879
20-May			2581879.00 Cr	2581879
21-May			2581879.00 Cr	2581879
22-May			2581879.00 Cr	2581879
23-May			2581879.00 Cr	2581879
24-May			2581879.00 Cr	2581879
25-May			2581879.00 Cr	2581879
26-May			2581879.00 Cr	2581879
27-May			2581879.00 Cr	2581879
28-May			2581879.00 Cr	2581879
29-May			2581879.00 Cr	2581879
30-May			2581879.00 Cr	2581879
31-May			2581879.00 Cr	2581879
1-Jun			2581879.00 Cr	2581879
2-Jun			2581879.00 Cr	2581879
3-Jun			2581879.00 Cr	2581879
4-Jun			2581879.00 Cr	2581879
5-Jun			2581879.00 Cr	2581879
6-Jun			2581879.00 Cr	2581879
7-Jun			2581879.00 Cr	2581879
8-Jun			2581879.00 Cr	2581879
9-Jun			2581879.00 Cr	2581879
10-Jun			2581879.00 Cr	2581879
11-Jun			2581879.00 Cr	2581879
12-Jun			2581879.00 Cr	2581879
13-Jun			2581879.00 Cr	2581879
14-Jun			2581879.00 Cr	2581879
15-Jun			2581879.00 Cr	2581879
16-Jun			2581879.00 Cr	2581879
17-Jun			2581879.00 Cr	2581879
18-Jun			2581879.00 Cr	2581879
19-Jun			2581879.00 Cr	2581879
20-Jun			2581879.00 Cr	2581879
21-Jun			2581879.00 Cr	2581879
22-Jun			2581879.00 Cr	2581879
23-Jun			2581879.00 Cr	2581879
24-Jun			2581879.00 Cr	2581879
25-Jun			2581879.00 Cr	2581879
26-Jun			2581879.00 Cr	2581879
27-Jun			2581879.00 Cr	2581879
28-Jun			2581879.00 Cr	2581879
29-Jun			2581879.00 Cr	2581879
30-Jun	2500000.00		81879.00 Cr	81879
1-Jul			81879.00 Cr	81879
2-Jul			81879.00 Cr	81879
3-Jul			81879.00 Cr	81879
4-Jul			81879.00 Cr	81879
5-Jul			81879.00 Cr	81879
6-Jul			81879.00 Cr	81879
7-Jul			81879.00 Cr	81879
8-Jul			81879.00 Cr	81879
9-Jul			81879.00 Cr	81879
10-Jul			81879.00 Cr	81879
11-Jul			81879.00 Cr	81879
12-Jul			81879.00 Cr	81879
13-Jul			81879.00 Cr	81879
14-Jul			81879.00 Cr	81879
15-Jul			81879.00 Cr	81879
16-Jul			81879.00 Cr	81879
17-Jul			81879.00 Cr	81879
18-Jul			81879.00 Cr	81879
19-Jul			81879.00 Cr	81879
20-Jul			81879.00 Cr	81879
21-Jul			81879.00 Cr	81879
22-Jul			81879.00 Cr	81879
23-Jul			81879.00 Cr	81879
24-Jul			81879.00 Cr	81879
25-Jul			81879.00 Cr	81879
26-Jul			81879.00 Cr	81879
27-Jul			81879.00 Cr	81879
28-Jul			81879.00 Cr	81879
29-Jul			81879.00 Cr	81879
30-Jul	15000.00		66879.00 Cr	66879
31-Jul			66879.00 Cr	66879
1-Aug			66879.00 Cr	66879
2-Aug			66879.00 Cr	66879
3-Aug			66879.00 Cr	66879
4-Aug			66879.00 Cr	66879
5-Aug			66879.00 Cr	66879
6-Aug			66879.00 Cr	66879
7-Aug			66879.00 Cr	66879
8-Aug			66879.00 Cr	66879
9-Aug			66879.00 Cr	66879
10-Aug			66879.00 Cr	66879
11-Aug			66879.00 Cr	66879
12-Aug			66879.00 Cr	66879
13-Aug			66879.00 Cr	66879
14-Aug			66879.00 Cr	66879
15-Aug			66879.00 Cr	66879
16-Aug			66879.00 Cr	66879
17-Aug			66879.00 Cr	66879
18-Aug			66879.00 Cr	66879
19-Aug			66879.00 Cr	66879
20-Aug			66879.00 Cr	66879
21-Aug			66879.00 Cr	66879
22-Aug			66879.00 Cr	66879
23-Aug			66879.00 Cr	66879
24-Aug			66879.00 Cr	66879
25-Aug			66879.00 Cr	66879
26-Aug			66879.00 Cr	66879
27-Aug			66879.00 Cr	66879
28-Aug			66879.00 Cr	66879
29-Aug			66879.00 Cr	66879
30-Aug			66879.00 Cr	66879
31-Aug			66879.00 Cr	66879
1-Sep			66879.00 Cr	66879
2-Sep			66879.00 Cr	66879
3-Sep			66879.00 Cr	66879
4-Sep			66879.00 Cr	66879
5-Sep			66879.00 Cr	66879
6-Sep			66879.00 Cr	66879
7-Sep			66879.00 Cr	66879
8-Sep			66879.00 Cr	66879
9-Sep			66879.00 Cr	66879
10-Sep			66879.00 Cr	66879
11-Sep			66879.00 Cr	66879
12-Sep			66879.00 Cr	66879
13-Sep			66879.00 Cr	66879
14-Sep			66879.00 Cr	66879
15-Sep			66879.00 Cr	66879
16-Sep			66879.00 Cr	66879
17-Sep			66879.00 Cr	66879
18-Sep			66879.00 Cr	66879
19-Sep			66879.00 Cr	66879
20-Sep			66879.00 Cr	66879
21-Sep			66879.00 Cr	66879
22-Sep			66879.00 Cr	66879
23-Sep			66879.00 Cr	66879
24-Sep			66879.00 Cr	66879
25-Sep			66879.00 Cr	66879
26-Sep		1000000.00	1066879.00 Cr	1066879
27-Sep			1066879.00 Cr	1066879
28-Sep	1079280.00		12401.00 Dr	-12401.00
29-Sep	9840.00		22241.00 Dr	-22241
30-Sep			22241.00 Dr	-22241
Grand Total	3606120.00	1000000.00	22241.00 Dr