DEAR ALL,
PLEASE LET ME KNOW THAT WHETHER DEDUCTION OF TDS IS NECESSARY ON THE INTEREST PAID ON LOAN TAKEN FROM NBFCs LIKE TATA CAPITAL & RELIANCE CAPITAL FOR FINANCING HEAVY VEHICLES...
IF YES UNDER WHICH SECTION AND IF NO THE PLEASE SITE RELEVANT SECTION & CASE LAWS.
REGARDS
MANISH KR JAISWAL
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,
CAclubindia
