LC Interest weather Applicable U/s 194A
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 February 2010
Dear Experts,
Am also agree in ur stand, if our term Loan & working Capital Interest are our expenses, so we don't want to deduct any amount to pay by the way of interest.
But my doubt different,
U/S 194A Interest Other than Interest on Securities.
if i opened Letter of credit for purchase of raw material, instead of utilising OCC amount.
my vendor raise BIll of Exchange for material cost & Seprate Debit note raise for lc interest for usance period, our lc having conditions interest for usance period beared by opener's a/c. so vendor discounting lc with our bank with provisional invoice (ex. 90days before).
At the time of LC fall due we have paid to bank full amount.
weather i should deduct tds u/s 194A for LC interest amount or not.
if it Yes or No, pls clarify with provisions & exmple.
regards
Senthil Kumar.
SBQ Steels Limited.
Am also agree in ur stand, if our term Loan & working Capital Interest are our expenses, so we don't want to deduct any amount to pay by the way of interest.
But my doubt different,
U/S 194A Interest Other than Interest on Securities.
if i opened Letter of credit for purchase of raw material, instead of utilising OCC amount.
my vendor raise BIll of Exchange for material cost & Seprate Debit note raise for lc interest for usance period, our lc having conditions interest for usance period beared by opener's a/c. so vendor discounting lc with our bank with provisional invoice (ex. 90days before).
At the time of LC fall due we have paid to bank full amount.
weather i should deduct tds u/s 194A for LC interest amount or not.
if it Yes or No, pls clarify with provisions & exmple.
regards
Senthil Kumar.
SBQ Steels Limited.
12 February 2010
Interest paid to banks/financial institutions do not come under the TDS provisions. This section applies to other payees who may recive interest in excess of Rs10,000/- a FY
12 February 2010
agreed
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Difference between Date of Payment and Date of Deduction?
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- GST Rate for Catering Services
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- ITR 4 and Bank transactions
- FCRA 6 E- Intimation
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
