Tds on bill discounting charges
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 May 2013
As a finance company, in their business of Bill discounting,making payment to the vendors for Rs. 98/- against bill of Rs. 100/- and collecting Rs. 100/- from the client.
Below is the scheme of entries in books of finance company:
Loan A/c (Asset) - Rs. 100/- Dr.
Bank A/c - Rs. 98/- Cr.
Upfront interest(income)- Rs. 2/- Cr.
Please advise whether vendor has to deduct TDS on discounting charges of Rs. 2/- or not.
Secondly, this is called interest of discounting charges income in books of lendor.
Below is the scheme of entries in books of finance company:
Loan A/c (Asset) - Rs. 100/- Dr.
Bank A/c - Rs. 98/- Cr.
Upfront interest(income)- Rs. 2/- Cr.
Please advise whether vendor has to deduct TDS on discounting charges of Rs. 2/- or not.
Secondly, this is called interest of discounting charges income in books of lendor.
26 August 2013
If charges paid to bank then no TDS
26 August 2013
If charges paid to bank then no TDS
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