Tds on interest paid to nbfc
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 July 2013
It is clear that assessee has to deduct TDS from Car loan interest paid to NBFC. But sometimes, a car loan is in the name of say Director of a company or partner of a firm and all the payments - downpayments, intstallments (EMI) etc paid by company/firm. The Car and Car loan is also appearing in the books of Company/firm. Car is used for the business purpose by Company/ Firm. Only to avoid higher RTO taxes, the car is bought in the name of Director/partner.
My query is whether TDS should be deducted by the Company/firm on interest payments to NBFCs like Kotak Mahindra Prime or Tata Capital etc if the loan itself is not in the company name?
My query is whether TDS should be deducted by the Company/firm on interest payments to NBFCs like Kotak Mahindra Prime or Tata Capital etc if the loan itself is not in the company name?
24 July 2013
The matter of TDS arises mainly only when such payments are made by the business entity. As the car has been used in the business and NBFC is accepting cheques from the firm/company, and further the firm/company is liable to deduct TDS, do the finance company object ?
.
Why company is making interest payments for the cars ? Naturally it is for the purpose of the business only.
.
so, in my view the substance over form prevail in such cases. When the company can claim depreciation , interest etc, why it can not deduct TDS ?
.
.
Why company is making interest payments for the cars ? Naturally it is for the purpose of the business only.
.
so, in my view the substance over form prevail in such cases. When the company can claim depreciation , interest etc, why it can not deduct TDS ?
.
Message likes :
1 times
24 July 2013
1)TDS is applicable on interest paid to NBFC.
2)generally it will not get deducted at the time of EMI payment..
3)you need to pay TDS from your pocket and then after filing TDS return if you provide FORM16A for TDS paid on interest paid to NBFC they will pay you back the TDS money..this is what generally goes in case of NBFC tds settlement
4)just debit the NBFC account for the tds paid and as and when you collected money from them credit their account
Thanks & regards
Ganesh babu k
2)generally it will not get deducted at the time of EMI payment..
3)you need to pay TDS from your pocket and then after filing TDS return if you provide FORM16A for TDS paid on interest paid to NBFC they will pay you back the TDS money..this is what generally goes in case of NBFC tds settlement
4)just debit the NBFC account for the tds paid and as and when you collected money from them credit their account
Thanks & regards
Ganesh babu k
Message likes :
5 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR -1 Filing
- Section 54 f disallowed will be taxed at what rate
- TWO FIRM NAME IN ONE GST NUMBER
- Transportation of Petrol, Diesel by GTA and Other than GTA
- Long term capital gain exemption on sale of mutual funds
- Rebate u/s 87A under old regime - LTCG u/s 112A
- Trust 10AB form required for old asst. years?
- SEA GOING ALLOWANCE
- Transfer of rectification rights to ao
- IGST Refund pending since June 2022.
- How to rectify gstr1 credit note
- Interest on building loan
- Non- payment of GST on supply of services- reg
- Other party gstin shown on my login id
- Accumulated surplus exceeding 15%
- Different GST Number MEESHO
- Query on TDS Section 194H
- Fees amount transfer procedure for two doctors
- Notice u/s 148 of IT Act
- Gst1A within time, will the customer get corrected ITC set off?
Trending Online Classes
CAclubindia
