Tds on late payment charges
This query is : Resolved
06 February 2015
My proprietorship firm is under audit u/s 44AB. I have paid late payment charges on purchases over 10000. Will I liable to deduct TDS on this amount or not?
06 February 2015
No. Because such payment will not fall with in the category of interest [section 2(28A)].
Citation:- ITO vs. Parag Mahasukhlal Shah [2011] 46 SOT 302.
Citation:- ITO vs. Parag Mahasukhlal Shah [2011] 46 SOT 302.
Message likes :
1 times
Rupesh Jain
(Expert)
06 February 2015
IF IT IS INTT. THEN YOU HAVE TO DEDUCT THE TDS U.S 44AB OTHERWISE NOT APPLICABLE.
Message likes :
1 times
06 February 2015
Agree with the view of Warrier Sir.
Also in Sri Venkatesh Paper Agencies (Hyd.) (P.) Ltd. vs Deputy Commissioner of Incometax, Circle3(1), Hyderabad it was held that TDS not required to be deducted on interest paid to creditors as it formed part of purchase consideration.
Also in Sri Venkatesh Paper Agencies (Hyd.) (P.) Ltd. vs Deputy Commissioner of Incometax, Circle3(1), Hyderabad it was held that TDS not required to be deducted on interest paid to creditors as it formed part of purchase consideration.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Reward for festival
- 18% Rent a cab
- Missed uploading GST Invoice
- Movement of goods by packers and movers - type of sale - Reg.
- Closer of business and itc of capital goods
- Appointment of Auditor By Form ADT-1
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- TDS Return Statement Status
- Gratuity paid to legal heir above 20 lakh is taxable or not
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
