Hi everyone.
If someone has to make payment of Loan-Buyer's Credit(Principal & Interest) to a Foreign Bank e.g. CITI Bank, Singapore, wheteher there is any TDS Liablity on Interest Payment and if yes, under which section.
Secondly, will it make any difference, if the loan is taken from a foreign branch of a local bank, e.g. Punjab Nationak Bank, Singapore Branch?
Please suggest something on urgent basis???????
Sir,
1) I think so TDS shall not be applicable on Interest in the First case.
2) Also in the Second Case, TDS shall not be applicable on Interest charged by PNB, though it has a Branch outside India, as PNB is covered under the Banking Regulations Act. Hence, there is no obligation to deduct the TDS towards Interest charged by the Bank.
Regards,
Devendra Kulkarni
/articles/tds-on-interest-paid-to-overseas-bank-9900.asp
So here after reading the link sent by Ms. Khushboo, I would like to tell you Mohit Sir that TDS provisions shall be applicable in the First case mentioned by you but not in the Seond case.
Regards,
Devendra
CCI
Pro
CAclubindia
