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Tds on interest

sagar kotak (article) (65 Points)

19 August 2014

Wheteher TDS is Required to be Deduted on interest payment to BPCL on Loan given by BPCL

BPCL(Bharat Petroleum Corporation of India)

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6 Replies

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 19 August 2014

Dear Sagar

IF BPCL is Goverment organisation then no need to deduct TDS on the same. Otherwise yes under section 194A.

Regards

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 19 August 2014

agreed with answer of mr. manoj

Ashwin Sharma (Partner) (152 Points)
Replied 19 August 2014

By virtue of u/s 194A(3) and 197(1C) BPCL is not covered in the exemption. So tax need to be deducted on interest payable to BPCL

Exemptions on TDS on inetrest is applicable to banks, PFI's, Co-op banks, LIC & UTI.

sagar kotak (article) (65 Points)
Replied 19 August 2014

Whether BPCL is Governmrnt Organisation..

A.Senthil Subramanian (Tax Consultant) (1658 Points)
Replied 20 August 2014

Central Government is having nearly 54% to 55% of Sharecapital of BPCL, and the remianing are held by other Government and Non-Government Bodies. So in my view BPCL is not fully a Government Company., it is Public Sector Company. So TDS should be deducted.

Ashwin Sharma (Partner) (152 Points)
Replied 20 August 2014

TDS provisions has nothing to do with govt or non govt company. Even if 90% of stake is held by govt co. TDS provisions are applicable. Exemptions are covered u/s 194A(3) and 197(1C)