Tds on payment of interest to sbi germany branch.
This query is : Resolved
CACS Gaurav Choudhary
(Querist)
30 January 2014
Whether we have to deduct TDS on Payment of interest to SBI Germany Branch.
AVTAR SINGH
(Expert)
30 January 2014
Withholding tax is applicable for interest payment.
AVTAR SINGH
(Expert)
30 January 2014
Withholding tax is applicable for interest payment.
CACS Gaurav Choudhary
(Querist)
30 January 2014
As per client SBI germany is a branch of SBI and no need to deduct TDS in case of interest payment to schedule bank.
Please clarify.
Please clarify.
AVTAR SINGH
(Expert)
30 January 2014
You are talking about exemption u/s 194A. No such exemption is for withholding tax.
CACS Gaurav Choudhary
(Querist)
03 February 2014
Thnks for your interest in the matter....TDS on foreign branch of domestic bank will not be applicable... as the foreign branch is also a resident U/s 9 of IT Act.
AVTAR SINGH
(Expert)
03 February 2014
You are right. The Indian bank is resident and a foreign branch of an Indian bank will continue to be a resident because a branch is not a separate entity. Section 9 has no role in this. Further S.194A(3) (iii) confers an exemption to income credited or paid to any banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies. The foreign branch of an Indian bank will qualify for this exemption
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