Shivish Verma (C A) (376 Points)
21 November 2017Hi Friends
My client is Builder cum developer. Its covered under interest subvention scheme. Its customers have taken loan from bank and builder is reimbursing interest componet to customers by issuing cheques directly to customers.
Please confirm whether the builder company should deduct TDS on interest component reimbursed by it to its customers on laon taken by them.
In my opinion, there should not be any TDS on such reimbursement.
Please confirm
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160976 Points)
Replied 21 November 2017
" whether the builder company should deduct TDS on interest component reimbursed by it to its customers on laon taken by them?"
To be on safe side, for not to disallow the (reimbursement) expense...... better to deduct TDS.
CAclubindia
