Is tax deductible at source on delayed payment interest charged by power utility companies, gas supply companies, etc. on their fortnightly/monthly bills raised on industrial/commercial consumers?
K Venkatraman (Service) (125 Points)
24 October 2011Is tax deductible at source on delayed payment interest charged by power utility companies, gas supply companies, etc. on their fortnightly/monthly bills raised on industrial/commercial consumers?
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 24 October 2011
Hi, I am of the opinion that Yes , Tds is required to be deducted under the provision of section 194A i.e "interest other than interest on securities" , in case of individual or Huf the turnover exceeds the limit specified under section 44AB
K Venkatraman
(Service)
(125 Points)
Replied 24 October 2011
In that case, is there a circular specifically exempting power utility, gas-supply companies,etc. in Govt./public sector from such TDS on overdue interest recovered by them?
CA Vishwas Aradhya
(Consultant)
(60 Points)
Replied 25 October 2011
| Originally posted by : K Venkatraman | ||
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Is tax deductible at source on delayed payment interest charged by power utility companies, gas supply companies, etc. on their fortnightly/monthly bills raised on industrial/commercial consumers? |
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Dear Venkatraman,
Subsection 3 to section 194A deals with exemptions to interest payment without TDS. Power utility and gas supply companies are not covered under any of the clauses to the said subsection. Therefore, TDS is to be made unless notification is issued by the central governement under clause (iii) f to subsection 3.
Vishwas | 95913 18000
Ranjeet Bisht
(Proprietor)
(22 Points)
Replied 27 October 2011
Yes above Thread is Correct,
In case of Govt. we are not Deduct TDS
Thx
CA Ksheerabthi Nathan
(CA in practise)
(167 Points)
Replied 28 October 2011
i think for tds is not required to be deducted for power companies as it is govt own.but for gas supply companies it is to be deducted .
CAclubindia
