TDs on Interest Paid to NRi

This query is : Resolved

CA Chintan Parikh (Querist)
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16 April 2011 Dear Expert

a private Ltd Company paid a Interest on Unsecured Loan to NRI. Such Fund invested by NRI from his/her Past income earned in India.

What rate of TDS to be deducted

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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17 April 2011 if money has been borrowed in foreign ncurrencyb than at 20 pc otherwise 30pc

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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02 June 2011 As per FEMA ,Indian Company is not allowed to borrow from NRI . There is a special scheme called ECB wherein lot of formalities need to be observed before taking such loan.

The rate shall have to be 20.6% and 30.9% respectively. Also the relief under DTAA's are also available to NRI.

Anuj
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