TDS on Interest paid to Foreign banks
This query is : Resolved
15 December 2010
Dear Sirs,
Please clarify anyone-
Ours is a public Ltd company .We have availed Buyers credit loan with usance perid of 90 days for Import bills from Standard Chartered bank ,Singapore.
We will honour the Buyers credit loan on the due date ie. 90 th day alongwith interest.
1) Whether we have to deduct and pay TDS @ 20 % on Interest payments to Foreign Bank -Standard chartered bank?
2)Shall we get the Form No 15CB duly certified by Chartered Accountant for this interest payment?
3)Does the IT Circular no 04/ 2009 dt 29.6.2009 ( Remittances to non-residents u/s 195 of IT Act) is applicable for the above transaction ?
Thanks in advance
Regards
Varathan
Please clarify anyone-
Ours is a public Ltd company .We have availed Buyers credit loan with usance perid of 90 days for Import bills from Standard Chartered bank ,Singapore.
We will honour the Buyers credit loan on the due date ie. 90 th day alongwith interest.
1) Whether we have to deduct and pay TDS @ 20 % on Interest payments to Foreign Bank -Standard chartered bank?
2)Shall we get the Form No 15CB duly certified by Chartered Accountant for this interest payment?
3)Does the IT Circular no 04/ 2009 dt 29.6.2009 ( Remittances to non-residents u/s 195 of IT Act) is applicable for the above transaction ?
Thanks in advance
Regards
Varathan
16 December 2010
(a) Yes provided the foreign bank doesnot have a PAN. In my view they must have got a PAN for themselves. They can also be granted a reduced TDS @ 10% if certain formalities are made out.
(b)Yes.
(c)Yes
Anuj Gupta
0-9810106211
(b)Yes.
(c)Yes
Anuj Gupta
0-9810106211
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