Please Help: TDS aplicability
Posted Date : 11-Jul-2012 , 06:22:29 pm | Posted By Ashish
Is payment of Interest to a indian branch of a foreign bank ie. Standard chartered bank attract tds liability to the Payer??
Category : Income Tax | Answers : 3 | Comments : 6 | Hits : 452
Answers
Answer By: CA Satuti Mahajan
yes
Answer By: Krishna Chandra Santi
As the payment made and income arise in India, TDS must be deducted.
Answer By: Vikash Kumar Jha
As per my knowledge TDS liabilities should be attracted to the payer
Comments
Ashish
12-Jul-2012 , 01:27:31 pmBut Standard chartered bank is a Scheduled Foreign Bank in India. Pls Clerify your answer.
Ashish
12-Jul-2012 , 01:39:14 pmDear Krishna Please Clarify Your answer.
Krishna Chandra Santi
12-Jul-2012 , 02:58:07 pmOh I am sorry for the answer. I got a little bit confusion about your question about whether the bank paying the interest to its customer or the customer pays interest to the bank for loans. In the first case TDS must be deducted when the interest limit exceeds Rs 10,000/- u/s 194A. In the second case when the customer paying interest to the bank, as the bank is coming under the meaning of Banking Company TDS will not be deducted u/s 194A. I hope now you are clear about such provisions. Please comment.
Ashish
12-Jul-2012 , 03:16:10 pmDear Krishna..... I m clear about it .... I have another query? Is every financial institution like bank needs to be register under banking regulation Act 1949??
Krishna Chandra Santi
13-Jul-2012 , 08:39:45 pmEvery financial institution doesn't require to be register under banking act, those financial institutions required to be get registered under banking regulation act, 1949, which are interested to operate banking activities.
Ashish
14-Jul-2012 , 03:06:41 pmDear Krishna Would it not attract the Sec195. As Standard chartered is the foreign Bank.