Tds on interest on late payment to creditors/supplier

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sumit kumar

sumit kumar (Querist)
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22 July 2014 Hello Sir,I want to know whether we have to deduct tds on Interest on late payment to creditors or not.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 July 2014 If the amount of Interest paid exceeds Rs 5000 then TDS required to be deducted u/s 194A @10%.

sumit kumar

sumit kumar (Querist)
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23 July 2014 Thanks Sir But ,In Sri Venkatesh Paper Agencies (Hyd.) (P.) Ltd. vs Deputy Commissioner of Income-tax, Circle-3(1), Hyderabad it was held that TDS not required to be deducted on interest paid to creditors as it formed part of purchase consideration. Sir please reply

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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26 July 2014 Thanks for correction.

Seen the Judgement. Going by the judgement TDS not required to be deducted on interest on late payment to creditors.