Applicability of tds on interest to nbfcs

Applicable Section 194A

No case law available ,,refer to provisions of 194A,,and here exemption available only on payment of interest to banks and not for NBFC

In general practice payment is done to NBFC via post dated cheques or EMI will suuposed to paid as per schedule

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So not possible to deduct TDS at the time of payment of EMI

So pay tds from your pocket and debit the NBFC account for this tds amount once you submit TDS certificate from them you will get money back from them

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In one of client place did same and tata Fin corp paid back tds amount to my client on receipt of tds certificate

Ganeshbabu is correct.

Regards,