whether tds applicable

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This query is : Resolved

santu (Querist)

09 January 2009 Is the interest paid to the bankers by a company attracts the TDS under sec 194A and if not applicable please specify me the circular no of the cxemptions plSSSSSSSSSSSSSS

K V Subba Rao

K V Subba Rao (Expert)

09 January 2009 Does not attract TDS. Refer Para 156 (b) in Page A-301 of 31st edition of Singhania's Ready Reckoner

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)

09 January 2009 section 194(3)(iii) says: TDS is not applicable to

(iii) to such income credited or paid to—
(a) any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies, or any co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank), or
(b) any financial corporation established by or under a Central, State or Provincial Act, or
(c) the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), or
(d) the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963), or
(e) any company or co-operative society carrying on the business of insurance, or
(f) such other institution, association or body [or class of institutions, associations or bodies] which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette