Tds on interest

This query is : Resolved

Guest

Guest (Querist)

06 August 2011 In case of Contract with Government , weekly installment for contract is paid to government . but if there is delay in payment of weekly installment interest is levied for late payment. is tds to be deducted on such interest for late payment of weekly installment??

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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06 August 2011 There are 2 sides of a coin. First you have to analyse have you given loan. The answer is No so u/s 194A it is not falling. Then what it is a part of contract and to be included in the contract the TDS shall be applicable but it is better to apply 194A

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