We are paying Interest in foreign currency to Foreign Bank which has PE in India. (eg. Citibank, ABN Amro Bank etc.) Pl inform weather TDS is applicable u/s195 whicy making payment to the said bank.
Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
29 April 2013We are paying Interest in foreign currency to Foreign Bank which has PE in India. (eg. Citibank, ABN Amro Bank etc.) Pl inform weather TDS is applicable u/s195 whicy making payment to the said bank.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 11 June 2013
Yes , such payments are covered under section 195.
Anuj
femaquery @ gmail.com
Janani Subramanian
(Employed)
(151 Points)
Replied 11 June 2013
@ Deepak : Is the interest paid to the PE of the foreign bank in India or to the Foreign Bank directly. Only if it is paid to the foreugn bank directly will Sec. 195 be attracted.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 11 June 2013
sec. 195 is applicable to any non-resident.
Branch of Foreign bank is a non-resident as per Indian Income Tax Act,hence any payment to branch of foreign bank is deductable under section 195.
Anuj
femaquery @ gmail.com
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