Tds on interest on late payment to creditors/supplier
This query is : Resolved
sumit kumar
(Querist)
22 July 2014
Hello Sir,I want to know whether we have to deduct tds on Interest on late payment to creditors or not.
22 July 2014
If the amount of Interest paid exceeds Rs 5000 then TDS required to be deducted u/s 194A @10%.
sumit kumar
(Querist)
23 July 2014
Thanks Sir But ,In Sri Venkatesh Paper Agencies (Hyd.) (P.) Ltd. vs Deputy Commissioner of Income-tax, Circle-3(1), Hyderabad it was held that TDS not required to be deducted on interest paid to creditors as it formed part of purchase consideration. Sir please reply
26 July 2014
Thanks for correction.
Seen the Judgement. Going by the judgement TDS not required to be deducted on interest on late payment to creditors.
Seen the Judgement. Going by the judgement TDS not required to be deducted on interest on late payment to creditors.
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