TDS on HP Interest

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Debasish Mohanty

Debasish Mohanty (Querist)
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03 April 2010 Is Sec. 194A aplicable for the interest portion of HP instalment.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 April 2010 WHEN A PART OF PURCHASE INSTALMENT IS PAID BY A HIRER TO THE OWNER UNDER A HIRE PURCHASE CONTRACT, THE PROVISIONS OF SEC 194A ARE NOT ATTRACTED----
INSTRUCTION NO.1425, DATED NOV.16, 1981

kartik_somu

kartik_somu (Expert)
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03 April 2010 agree with expert

Shyam Lal Naik

Shyam Lal Naik (Expert)
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03 April 2010 Either it shall be interest or hire charge.

If it is a loan arrangement, the interest portion of the EMI is exigible to TDS u/s 194A.

If it is Hire Purchase, the hire charge will be exigible to TDS u/s 194I.