Tds on payment to foreign bank

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2013 If Someone has to make payment of loan -Buyers Credit (Interest) to a Foreign Bank (City Bank of Singapore) , whether there is any TDS liability on interest payment will arise?
If yes, In Which Section.
Payment is going to be done through indian bank means party will pay to indian bank & indian bank will pay to foreign bank.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 November 2013 TDS under 195. refer to DTAA Article 11 (2)(a) - 10% TDS shall apply provided the Foreign bank provides PAN. else 20% shall apply.

All the payments are made through banks only. So that should be a factor.

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2013 WE ARE PAYING TO OUR BANK , AND OUR BANK IS PAYING TO THAT FOREIGN BANK THEN TDS LIABILITY WILL ARISE ON US OR OUR BANK.

AND 15CA/15CB FORM REQUIREMENT ALSO CLARIFY

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 November 2013 well if you are making the payment to your bank as interest and not as remittance, then no TDS shall apply and also no Form 15CA and 15CB.

However, if it is being transferred as a remittance which needs to be forwarded to the signaporean bank as Interest on your behalf then TDS and Form 15CA/15CB should apply.

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