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Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2013 Kindly reply whether TDS under Section 194A is to be deducted on interest paid to suppliers for late payment of dues/ bill amount?????

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

27 April 2013 Yes TDS required to be deducted provided the threshold limit of Rs 5000/- is crossed. Rate 10%.

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2013 But what if these transactions are settled merely by issue of debit/credit note?

Again, I came across an article where this income is considered as PGBP income and thus TDS should not be applicable.

Kindly guide as its an important and urgent matter.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

29 April 2013 If the expense is booked as interest then in my view TDS will have to be deducted. But if adjustment is made only through debit/credit note TDS deduction not required.

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