Whether to deduct TDS on interest paid to financing companies on a/c of financing of machinery ?
Vipan Kumar (Chief Accounts officer) (55 Points)
22 July 2010Whether to deduct TDS on interest paid to financing companies on a/c of financing of machinery ?
CA Adarsh
(Job)
(82 Points)
Replied 22 July 2010
If Interest paid to Financing Co. for Financing the machinery the TDS will not be deductible on this.
Manivannan.C
(article clerk - CA pcc 1st grp cleared)
(80 Points)
Replied 22 July 2010
If interes is credited or paid to any banking company, co-operative society engaged in banking business, public financial institution, LIC, UTI, a company or co-operative society carrying on insurance business or notified institutions.
If any payment is made to any private Financial institutions and if it exceeds 5000/- in a year tds has to be deducted @ 10%
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