Friends i have two question.
1.A Company Pays interest to creditors for belated payment. The interest paid is more than 10,000. Does the company need to deduct TDS?
2. A company give Letter of credit to a creditor for payment and the creditor discounts it with his bank. It is normal custom that the creditor will claim such discounting charges from company. Now such payments is interest? If yes then whether TDS apllicable?
i have answer for your 1st question it will attract tds
Dear Sathyanarayan,
1) TDS will be attracted & threshold limit is 5,000
2) TDS will not be attracted in this case since it is a kind of reimbursement of expenses incurred by Creitor.
| Originally posted by : Amir | ||
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Dear Sathyanarayan, 1) TDS will be attracted & threshold limit is 5,000 2) TDS will not be attracted in this case since it is a kind of reimbursement of expenses incurred by Creitor. |
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Dear Sathyanarayan,
Brother these are Bank Charges/Discounting Charges & not "Interest".
T R SOOD & CO
New Delhi
CA Inter
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Sri Aurobindo Gnostic Centre of Education
New Delhi
CA
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