TDS on remittance of Interest under Import Letter of Credit
This query is : Resolved
B. D. DAGA
(Querist)
26 April 2009
We enjoy 180 days credit from Overseas supplier in terms of Import L. C.. We are required to pay interest in foreign currency at the time of retirement based on interest rate at BBA / LIBOR. On the retirement of Import Bills, our Banker also remits interest as per Bill of Exchange drawn.
Please advise whether TDS is attracted on interest remittance and the rate thereof.
Please also advise Returns to be filed in this respect.
Please appraise me with the latest changes in the TDS Provisions in this respect which are being made applicable wef 1st July, 2009.
With Warm Regards
Please advise whether TDS is attracted on interest remittance and the rate thereof.
Please also advise Returns to be filed in this respect.
Please appraise me with the latest changes in the TDS Provisions in this respect which are being made applicable wef 1st July, 2009.
With Warm Regards
CA. B.SRINIVASULU
(Expert)
26 April 2009
TDS is applicable.
You have to deduct tds as per section 195 or you have to deduct tds as per Dobule taxation avoidance agreement with that country.
If you pay interest without deducting tds then it will attract penalty and also entire expenditure will be disallowed.
You have to deduct tds as per section 195 or you have to deduct tds as per Dobule taxation avoidance agreement with that country.
If you pay interest without deducting tds then it will attract penalty and also entire expenditure will be disallowed.
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
- Due date for filing return for the partner in partnership subjected to Tax Audit
- GST on reimbursement of expenses
- Query on effect of registration of property
- Visiting card purchase
- Whether output tax is taken credit by purchaser
- Number of years as per AS amortisation of Goodwill
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Equity Share Sale and Purchase
- Additional trade name
- Wrong CMPo8 file
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
