Will the interest subsidy payment made to a NBFC be treated as Interest income in the hands of NBFC or will it be treated as Promotional Expenses by the assessee?
If treated as Interest Expense in the hands of assessee, will TDS provisions under section 194A apply?
What was the purpose of the grant? Who gave it and when (prior to starting operation or later) ?
Does by Interest subsidy you mean that interest has been foregone? Check the 1st post and your previous post . Whether the grant has been received by NBFC or it has been provided by iy?
Please provide more details of transaction
In any case this is a revenue receipt and can't be capitalized . I want more info for checking whether TDS provision will apply or not
NBFC is indirectly receiving the interest which actually pertains to various customers, so in this case your assessee should deduct tax while making the payment to NBFC.
Yes 194-A
Unless NBFC absolves the right to receive interest, it wont get out of tax net
These are not promotional expenses. Sir where is any expense to begin with when you are recovering the amount ?
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