Ashish Bhatt ( B.COm C.A FINAL (New)) (493 Points)
03 December 2010Hello Sir/madam, One of our client take a Term loan from Standared Chartered Bank from U.K.Our client is in India & they are paying intrest to U.K based bank from india. my question is what is the rate of TDS on such intrest which is payed by our client. Please reply as soon as possible. Thanks in Advance
Priyank
(Learner)
(98 Points)
Replied 04 December 2010
Dear Ashish,
On first thought, tax need to be deducted @ 20%. or as per rates specified in DTAA, whichever is lower.
But on second thought, since payee is a banking company, no TDS should be deducted (on corollary of Section 194A).
I would advice to apply to respective officer u/s195. Still wait for other experts' reply
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