Tax Management India. Com
                            Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Manuals News SMS Articles Highlights
Discussions Forum
Home Forum Income Tax This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

← Previous Next →

Tds applicability on NBFC companies, Income Tax

Issue Id: - 1350
Dated: 16-7-2009
By:- sunil mehta
Tds applicability on NBFC companies

  • Contents

A partnership firm borrows takes a personal loan from HDB Financial Services Ltd,a subsidiary of HDFC Bank Ltd. for business purpose.hdb fIN.SER. LTD. IS A nbfc.That partnership firm was under tax audit in A.Y. 2008-09.The firm paid interest on personal loan exceeding rs.5000/- during the financial year. 1)Whether NBFC are subjected to TDS ?(ON INTEREST PAID BY BORROWER FOR BUSINESS PURPOSE) 2)Is there any exemption to NBFC?(Banks are out of purview of section 194A)?If yes then quote notification/circular no.

Posts / Replies

Showing Replies 1 to 2 of 2 Records

1 Dated: 18-7-2009
By:- Rama Krishana

I thing NBFCs are not banking companies and not eligible for the provisions of section 194A. However, it seems that the matter is controversial and more debate and views are invited on this issue.

2 Dated: 20-7-2009
Since the law is clear so no need of any notification or circular. Banks are exempt only. NBFC are not exempt and I have faced similar situation.Banking companies are those on whom banking regulation act applies.


Old Query - New Comments are closed.

← Previous Next →
Discussion Forum
what is new what is new

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.