Tds on interest paid to bajaj finance

This query is : Resolved

Quick Summary

TDS under Section 194A is applicable on interest paid to Bajaj Finance, being an NBFC, if the interest amount exceeds the prescribed threshold limit. The applicable TDS rate is generally 10%.

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2016 Dear Experts
A bike was financed by bajaj finance pls tell me weather TDS is to be deduct on interest amount paid to bajaj finance?

Regards
Amit Jaiswal

Sandeep Dharar

Sandeep Dharar (Expert)
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01 December 2016 No, TDS is not applicable on payment to any financial institution and Govt.

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2016 Dear sandeep sir.
I think bajaj finance is NBFC therefore
TDS shall be applicable on interest paid to the same. However if still your view is differ then pls quote any relevant section/clause/case law

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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02 December 2016 NBFC you have to deduct Tds on interest payable.

Sandeep Dharar

Sandeep Dharar (Expert)
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02 December 2016 Yes, TDS is applicable u/s 194A, if the amount exceeds the limit mentioned in the section (10K) @10%. I mistakenly taken it a financial institution.

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