TDS on Interest on Loan on Hire Purchase Basis
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 December 2009
Where machineries purchased by loan on hire purchase from NBFC repaid on EMI basis and the finance charges/ interest are debited to Interest Account at the year end, whether this interest/finance charges are subject to TDS u/s 194 A
Deduction u/s 80 IB (10)
If the land acquired by Banakhat and on the basis of development agreement, scheme developed and sold out to members by developer, deduction u/s 80IB(10) is questioned by the I.T.Deptt.as the land was not transferred in the name of the developer.
Kindly quote the judgement if any
Deduction u/s 80 IB (10)
If the land acquired by Banakhat and on the basis of development agreement, scheme developed and sold out to members by developer, deduction u/s 80IB(10) is questioned by the I.T.Deptt.as the land was not transferred in the name of the developer.
Kindly quote the judgement if any
Shyam Lal Naik
(Expert)
09 December 2009
First part of the query is ambiguous.
Loan and hire purchase are different transaction.
If it is a loan transaction, sec 194A gets attracted. If it is a hire purchase transaction, sec 194 I is attracted, since, what you pay is bascically hire charges for the machinary.
In any case TDS gets attracted, albeit under different sections.
Loan and hire purchase are different transaction.
If it is a loan transaction, sec 194A gets attracted. If it is a hire purchase transaction, sec 194 I is attracted, since, what you pay is bascically hire charges for the machinary.
In any case TDS gets attracted, albeit under different sections.
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