Sir,
Our company has taken loan of Rs. 20 lac from one individual and Rs. 70 lac from a Partnership firm
I want to know what rate of minimum interest must be paid.
As we shall pay interest annually, shuld we have to deduct tds quarterly.
Regards,
Paliwal
TDS must be deducted @ 10% under section 194A.
If the interest paid annually then TDS deducted annually.
if interest paid quarterly then TDS deduct quarterly.
| Originally posted by : Roshan Begrajka | ||
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TDS must be deducted @ 10% under section 194A. If the interest paid annually then TDS deducted annually. if interest paid quarterly then TDS deduct quarterly. |
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AGREE WITH MR ROSHAN.
Make monthly provision of Interest payable and deduct the 10% of TDS .
and remit the TDS every month to government.
| Originally posted by : Roshan Begrajka | ||
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TDS must be deducted @ 10% under section 194A. If the interest paid annually then TDS deducted annually. if interest paid quarterly then TDS deduct quarterly. |
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agreed
| Originally posted by : P!LL @ ! | ||
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Generally tds liability arises when the payment is made or credit is given to the account of payee whichever is earlier... But in case of interest payment....u/s 194 A You can make the TDS on the last payment of interest....I mean you need not deduct tds on earlier payments of interest. So you can deduct appropriate TDS annually on the last payments even if you make monthly or quarterly interest payments. Experts Please correct me if am wrong . |
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The Act is very clear
If you credit / pay then the TDS liability will arise on that day - whichever is earlier.
Hence TDS is to be deducted when paid / crediting the account whether annually or quarterly or monthly...
| Originally posted by : C.A. Jignesh N. Mehta | ||
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Originally posted by : P!LL @ ! Generally tds liability arises when the payment is made or credit is given to the account of payee whichever is earlier... But in case of interest payment....u/s 194 A You can make the TDS on the last payment of interest....I mean you need not deduct tds on earlier payments of interest. So you can deduct appropriate TDS annually on the last payments even if you make monthly or quarterly interest payments. Experts Please correct me if am wrong . The Act is very clear If you credit / pay then the TDS liability will arise on that day - whichever is earlier. Hence TDS is to be deducted when paid / crediting the account whether annually or quarterly or monthly... |
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But the special provisions sec 194 A (4) says in case of interest payment, You can make the TDS on the last interest payments unlike other sections wherein one has to make the TDS on payment / credit the account which ever is earlier.
Similarly in case of salary it is not mandatory to deduct on each and every months payments, one can make tds deduction even on the last payment of salary.
As per your explanation everyone will credit the account of the payee either quartetly or may be even annually to avoid the tds compliance work monthly. Interest section for non deduction of tds or late payment of tds will lose its importance.
Pls clarify me.
We have make the payment of Interest on loan on Oct 2013. But forgot to deduct tds on it and file the return.
What will be the consequences and pls provide me solution for it
we will incur loss as we can not claim for party the payment of TDS.
Private Limited company taken 500000 Loan In july And paid Interest on loan Rs . 17329/- iIn Feb. 2015. But Not Deduction TDS .And I Have Also Fill TDS Reture 2014-15.
Any Problem And please tell any Solutions
CAclubindia
