Tds on vehicle loan interest

Yes u have to deduct TDS.

ACCORDING TO ME,

Section 194A explains that Any person, not being an individual or a Hindu Undivided Family who is responsible
for paying to a resident any income by way of interest, other than interest on securities, is required to deduct
income tax thereon at the rate of 10% at the time of credit of such income to the account of payee, or interest
payable account or suspense account or at the time of payment thereof, in cash or by issue of a cheque or draft
or by any other mode, whichever is earlier,
However this section also state some cases where provisions of this section are not applicable which includes:
TDS is not required to be deducted where interest is credited or paid to any banking company, co-operative
societies engaged in banking business, public financial institutions, the Life Insurance Corporation, the unit Trust
of India, a company or a co – operative society carrying on the business of insurance, or notified institution.
But this section does not provide any exemption from TDS to Non Banking financial companies.
Conclusion: TDS is not required to be deducted on payment of interest (or any other service fee) if the payment
is made to some Public financial Institutions, however need to comply with the TDS provisions under section
194A if payment is made to any Non – Banking financial Companies.

yes.Mandatory to deduct TDS on interest paid to NBFC.

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But generally NBFC will collect full amount of EMI..

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You need to pay amount of interest first and have to pay tds from your pocket and after filing of relevant quarter tds return you may ask for re-imbursement of tds paid on thier favour by providing tds certificate for the same.have a word with them whether they have lower deduction certificate u/s 197.

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however no problem if they agree to deduct TDS from emi amount

Deduct TDS

Then Claim Back The Amount