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TDS on Interest Payment to Foreign Bank

TDS / TCS 3027 views 4 replies

Harismohan

Accountant

177 Points Posted on 03 June 2011

Dear Sirs,

Please clarify anyone-

Ours is a public Ltd company .We have availed Buyers credit loan with usance perid of

90 days for Import bills from citibank, manama, Bahrain.

We will honour the Buyers credit loan on the due date ie. 90 th day alongwith

interest.

My Question is

1. What percentage of TDS to be deducted?

2.Whether 20 % to be deducted because of bank is foreign bank and not having PAN

3. Whether 15CB to be submitted

Please clarify the . It is urgent

With Best Regards

S.Mohan

Replies (4)

valji

Accounts manager-MBA

2150 Points Posted on 03 June 2011

tds are not applicable to payment of the bank

Prasad

Sr. Manager

617 Points Posted on 03 June 2011

Yes you need to deduct TDS u/s 195. Please check the DTAA with that particular country & Residential status of the Bank.. you need to deduct at either DTAA or 195. Again if the Bank is established under the Foreign Bank regulation of financial instituion the rate of TDS is NIL.

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

7024 Points Posted on 03 June 2011

TDS rate shall be 20% plus cess i.e 20.6% under sec 115A. Also if the foreign party has PAN(Citibank must be having a PAN) then any benifit available under India -USA DTAA can be availed.

Form 15Cb shall needed to be submitted.

Anuj

0-9810106211

Gurpreet Singh

Assistant

35 Points Posted on 04 February 2012

we have pvt ltd co, we have availed buyer credit from city bank for LC payment, we paid interest and due amt on due date to city bank by purchasing $ , there is need to deduct TDS on Interest , if yes under which Section , and city bank is a forein Bank , rate of TDS applicable