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Tds on interest payable to nbfc

Suchita Shivaji More (Accountant) (168 Points)

04 July 2018

Dear Sir, In private company. if loan is taken from NBFC (Bajaj, Capital First & Tata Capital) then we have to deduct TDS amount from interest on loan? Our interest is auto-debited from bank account. If not then what should we do for audit purpose?

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160396 Points)
Replied 04 July 2018

Yes, TDS u/s. 194A is applicable.......

Suchita Shivaji More (Accountant) (168 Points)
Replied 05 July 2018

We have not deducted TDS for F Y 2017-18. what should we do now?

Jeeva Thangavelu (Student CA Final ) (609 Points)
Replied 05 July 2018

Still TDS can be remitted and return can be revised. Otherwise you have to disallow 30% of the total Interest paid to NBFC in computation of income.
Note that generally in most NBFC cases, the TDS has to be remitted from hand and then refund to be claimed from NBFC based on Form 16A.