Tds on guarantee
This query is : Resolved
26 July 2011
Dear experts,
if an Indian Pvt Limited company pays, Interest on Guarantee given by a foreign bank (not having any branch in India) to a limited company in India.
Then whether TDS is deductible ?
E.g. :-
XYZ bank of korea has given guarantee to ABC limited of india for Rs.32 crores, against contract entered by ABC with PQR Pvt Limited.
PQR Pvt Ltd asked to XYZ Bank to give guanatee to ABC Ltd, for which XYZ bank of korea charged Rs.60Lacs as interest for 820 days @ 0.79%.
Now whether PQR Pvt Ltd should deduct TDS on Rs.60 Lacs ?
Please reply urgently...
if an Indian Pvt Limited company pays, Interest on Guarantee given by a foreign bank (not having any branch in India) to a limited company in India.
Then whether TDS is deductible ?
E.g. :-
XYZ bank of korea has given guarantee to ABC limited of india for Rs.32 crores, against contract entered by ABC with PQR Pvt Limited.
PQR Pvt Ltd asked to XYZ Bank to give guanatee to ABC Ltd, for which XYZ bank of korea charged Rs.60Lacs as interest for 820 days @ 0.79%.
Now whether PQR Pvt Ltd should deduct TDS on Rs.60 Lacs ?
Please reply urgently...
26 July 2011
YES, YOU NEED TO DEDUCT TDS,
THERE IS DTAA BETWEEN INDIA AND KOREA AND TDS RATE IS 10%,
CAN U TELL ME BANK NAME, IF BANK IS INDIAN BASED THEN NO NEED TO DEDUCT TDS.
THERE IS DTAA BETWEEN INDIA AND KOREA AND TDS RATE IS 10%,
CAN U TELL ME BANK NAME, IF BANK IS INDIAN BASED THEN NO NEED TO DEDUCT TDS.
30 July 2011
Thank u sir.
Bank name is The Export Import Bank of Korea. (It is not a INDIAN bank)
Bank name is The Export Import Bank of Korea. (It is not a INDIAN bank)
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