Applicability of tds

        NO

Regarding interest on repayment of loan to directors - TDS is applicable since it is not specifically exempted u/s 194A

Regarding Discounting on LC - The supplier in whose favour LC was issued discounted it with the bank to receive payment. This discount is actually in the nature of Interest. In this case TDS is not applicable since payment is made to a banking company. Such payments are specifically exempted u/s 194A

Discount Charges are paid to banks. As per section 194A(3) provisions of TDS does not apply to payment  that are made to banks. Therefore provisions of TDS doesn't apply on LC discounting charges.