In earlier article 5% WHT as per Sec 194LC not applicable to Buyers Credit we had discussed on Sec 194LC. This article gives difference Between Sec 195 & Sec 194LC
| Particular | Sec 195 | Sec 194LC |
| From | Since Inception of Act | July 2012 |
| Upto | – | June 2015 |
| Applicable on | Any payment business | Money borrowed under Loan Agreement; or By way of Issue of Long term Infrastructure bonds |
| Rate of TDS with availability of PAN Card | As DTAA agreement. Incase of non DTAA 20%. Further details refer this link | 5% and 3% Education Cess there on ( 2% Surcharge wherever applicable) |
| Who is responsible for tax deduction | Resident or Non resident | An Indian Company |
| Applicable | If income is chargeable to tax in India in the hands of recipient | If Interest is paid at approved rate |
Buyer's Credit & Supplier's Credit 