Tds to be deducted on payment of import to foreign bank?
This query is : Open
26 December 2014
Dear Sir/M'am,
Importer of Raw material makes payment of Import amount(L/C) plus Interest on such amount to foreign bank.
1) Whether TDS to be deducted on Interest amount?
2) And Whether 15CA/CB requires at the time of payment to Foreign bank?
Please reply as earliest as possible.
Importer of Raw material makes payment of Import amount(L/C) plus Interest on such amount to foreign bank.
1) Whether TDS to be deducted on Interest amount?
2) And Whether 15CA/CB requires at the time of payment to Foreign bank?
Please reply as earliest as possible.
26 December 2014
There is no need to deduct TDS on interest i.e.,LC discounting charges payable to Bank. U/s 194 A interest paid to Bank does not attract TDS.
Thanks,
DVS Satyanarayana
Thanks,
DVS Satyanarayana
Message likes :
1 times
26 December 2014
Thank you Sir...But whether 15CA/CB required or not?
26 December 2014
And sir Its a Foreign bank...!
26 December 2014
Dear Mr. Satyanarayana, I like to open this query once again, as per notification no 56/2012 dated 31st December, 2012 the CBDT has exempt TDS provision for Payment towards
i) bank guarantee commission,
ii) cash management service charges,
iii)depository charges on maintenance of Demat accounts,
iv) charges for warehousing services for commodities
v) underwriting service charges
vi)clearing charges and
vii) credit and debit card charges
made to the banks which are listed in the Second Schedule of the Reserve Bank of India Act, 1934 (excluding Foreign Banks) can be made without TDS with effect from 1st January 2013.
And LC payments comes under definition of bank guarantee commission.
Therefore, LC charges paid foreign banks certainly comes under the TDS provisions under section 195 of Income Tax Act, 1961
i) bank guarantee commission,
ii) cash management service charges,
iii)depository charges on maintenance of Demat accounts,
iv) charges for warehousing services for commodities
v) underwriting service charges
vi)clearing charges and
vii) credit and debit card charges
made to the banks which are listed in the Second Schedule of the Reserve Bank of India Act, 1934 (excluding Foreign Banks) can be made without TDS with effect from 1st January 2013.
And LC payments comes under definition of bank guarantee commission.
Therefore, LC charges paid foreign banks certainly comes under the TDS provisions under section 195 of Income Tax Act, 1961
Message likes :
1 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
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- Taxable or Tax exempt
- NRI starting business in India
- ITDS U/S.194T of Firm
- ADVANCE PAYMENT OF ADVOCATE
- CREDIT NOTES WITHOUT GST
- TDS ON EMAIL DOMAIN SERVICE BILL
- Eway bill not cancelled within 24 hous what can be due
- REGARDING ANNUAL RETURNS FILLINGS OF A COMPANY INCORPORATED ON 28.03.2025
- GST rate and HSN code for sale of racing horses
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
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
