One company has taken loan from ORIX Auto Infrastructure Limited, It repays its loan as per EMI. I would like to know whether the company should deduct TDS on the interest paid to ORIX Auto Infrastructure Ltd.
CA. Rashi Goyal (Chartered Accountant) (512 Points)
19 January 2009One company has taken loan from ORIX Auto Infrastructure Limited, It repays its loan as per EMI. I would like to know whether the company should deduct TDS on the interest paid to ORIX Auto Infrastructure Ltd.
CA. Rashi Goyal
(Chartered Accountant)
(512 Points)
Replied 19 January 2009
Dear Ritesh,
Can you provide me the basis for the same.
CA. Ashok shah
(CHARTERED ACCOUNTANT)
(333 Points)
Replied 19 January 2009
In your case, TDS u/s. 194A is required to be deducted on payment of interest as defined in Sec.2 (28A), if
1) It exceeds Rs.5000/- in a financial year,
2) It is not excluded u/s.194A(3) and
3) The Recipient has not applied and obtained certificate for non-deduction u/s.197/197A.
CA. Rashi Goyal
(Chartered Accountant)
(512 Points)
Replied 19 January 2009
Thanx Mr. Ashok,
But I am in confusion whether it is covered U/s 194 A (3) or not as this is joint venture company with a Japanese company.
Can you suggest in case of "Orix Auto Infrastructure limited"
CA. Ashok shah
(CHARTERED ACCOUNTANT)
(333 Points)
Replied 19 January 2009
You have to check with the concerned company, whether they are notified and fall in the category Sec.194A (3).
CA. Rashi Goyal
(Chartered Accountant)
(512 Points)
Replied 19 January 2009
Is there any other way to check it.
CA. Ashok shah
(CHARTERED ACCOUNTANT)
(333 Points)
Replied 19 January 2009
I have verified circular No. F No.275/68/2007-IT (B) notifying institutions u/s.194A (3) (iii) (f). It does not show the name of your company.
CAclubindia
