Urgent query

dear shewta,

if the payments falls in specified sections 192, 193 and 194 . every company, individual, huf, firm should deduct tds other wise expenditure will not be allowed.

for your reference snap shot sections were appended here with

regards,

ram narayana agnihotram

I think you want to ask something like "is payment to nbfc as interest is subject to tds by payer if the nbfc is a payee??"

Answer is Yes...

But, controversy is that when banks are the payee then no tds is required to be deducted!!

So, it is a quite unfair provision... for nbfcs...

Sory...Actualy my query was that If NBFC Borrows the amount in form of loan or whatever name called, then Whether TDS of NBFC will be deducted?? 

dear shewta,

yes u have to deduct tds on interest payment if the interest payment crosses limit of 5000/- @ 10% .

regards,

ram narayana agnihotram

AGREE WITH MR RAM NARAYANA...

thanxxx a lot ram narayan sir ji

Dear Shwetha,

If you are paying interest to any body other than specified persons like banks, financial corpoaration, TDS is applicable.