tds on interest

CA Mohd Gouse (Chartered Accountant) (492 Points)

08 February 2008

dear freinds,

i have question to ask you.there is a one company where they have raised long term loan of about 90 lacs state bank of patiala & they pay interest of about rs.11 lacs on it.i think we need to deduct tds on it or don't we have to????need u reply.urgent.

thank you.

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12 Replies

M.Sriram Shenoy (CA Final) (814 Points)
Replied 08 February 2008

Mr.Mohd Gouse relax!! You need not deduct tax at source for payments made to RBI, Central Govt, State Govt, Banks, Financial Institutions etc.Go ahead and work cool.

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 08 February 2008

No.TDS on intrest to Govt.On unsecured loan make it applicable

Ashish Ranpara (TAX CONSULTANT) (369 Points)
Replied 10 February 2008

AS PER SEC 194A INTEREST PAYMENT MADE TO ANY BANKING COMPANY, CO-OPERATIVE SOCIETY ENGAGED IN BANKING BUSINESS, PUBLIC FINANCIAL INSTITUTIONS, LIC, UTI, CO-OPERATIVE SOCIETY CARRYING ON THE BUSINESS OF INSURANCE OR ANY NOTIFIED INSTUTITY , IS NOT LIABLE TO TDS DON'T WORRY AND CARRY ON

Srinivas Sharma KN (Tax Consultant) (292 Points)
Replied 11 February 2008

Don't worry!!!!!!!!! This is interest is not liable for TDS.

ANIL K SRIVASTAVA (C A) (47 Points)
Replied 12 February 2008

Clause (iii) of sb section (3) of section 194A clearly provides for non deduction of tax at source from payments to any banking company to which the Banking Regulation act, 1949 applies. Therefore no tax is deductible in case of payment of interest to State Bank of Patiala.

(Guest)

is tds deducted on interest paid on secured loans received from non banking financial institutions

(Guest)

My company taking a personal/business loan for GE Money Financial Services limites. if My company liable for deduction on tax from interst portion of Unsecured loan taking from GE money financial .

SHANKAR (Account Executive) (34 Points)
Replied 27 May 2009

TDS On Unsecured Loan come under sec 194A or not

Originally posted by :Guest
"	My company taking a personal/business loan for GE Money Financial Services limites. if My company liable for deduction on tax from interst portion of Unsecured loan taking from GE money financial .	"

Ramakrishna (Financial Executive) (438 Points)
Replied 27 May 2009

Dear Shankar!

Section 194A has a long lists of exempted category of instituions, and various individual entities have also been notified as exempt from the operations of tds U/S. 194a. Besides this, various financial instituions are also regularly obtaining NIL deduction certificate under Section 197 for the interest payments to be received in any particular financial year.

Barring these cases, ineterst paid to all other entities have to be subjected to TDS u/s. 194A.

Good Bye! Cheers!!

SHANKAR (Account Executive) (34 Points)
Replied 28 May 2009

Freight is part of the local Sales VAT Tax(Karnataka) Assable value.

which section come under this class. pls tell me sir.

SHANKAR (Account Executive) (34 Points)
Replied 28 May 2009

Originally posted by :SHANKAR
"	Freight is part of the local Sales VAT Tax(Karnataka) Assable value. which section come under this class. pls tell me sir.	"

1 Like

shiva shanker reddy (accountant) (23 Points)
Replied 07 January 2014

hello sir.

we can take loan from Religare finance. but we payment through by surety person. for example: A laon takeing from B. C surety of this loan. now A paid to C and C paid to B. now C Deducted TDS or Not.

please solve my problem