Tds

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sharma sanjiv (Querist)
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16 September 2011 Please clarify us Kotak Mahindra Prime Ltd is a Non Banking Financial Company .
In case, we had financed vehicle from said Company and Paid principal + interest. Whether TDS deducted on Interest payment

Thanks

With Best Regards

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 September 2011 If it is a banking company to which the Banking Regulation Act 1949 applies, TDS not required to be deducted. Otherwise deduct TDS on crossing the threshold limit of Rs 5000/- p.a. @ 10%

sharma sanjiv

sharma sanjiv (Querist)
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16 September 2011 but sir
the said company regd. under company act 1956.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 September 2011 Even IDBI Bank limited is registered under Companies Act. But Banking Regulation Act 1949 applies to it. So check whether Banking Regulation Act 1949 applies or not. I think the Banking Regulation Act 1949 will not apply to the above mentioned company.

Hari Beldona

Hari Beldona (Expert)
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16 September 2011 As per Section 194A of the Income Tax Act 1961, tax has to be deducted out of the interest payment made by any borrower to an NBFC at 10%.

sharma sanjiv

sharma sanjiv (Querist)
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16 September 2011 The operations of NBFCs are regulated by the RBI As per the RBI Act, a 'non-banking financial company' is defined as:- (i) a financial institution which is a company;

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 September 2011 TDS to be deducted @ 10% on crossing threshold limit of Rs 5000/- p.a.

sharma sanjiv

sharma sanjiv (Querist)
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16 September 2011 ok,
thanx all of you.

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