Friends i have two question.
1.A Company Pays interest to creditors for belated payment. The interest paid is more than 10,000. Does the company need to deduct TDS?
2. A company give Letter of credit to a creditor for payment and the creditor discounts it with his bank. It is normal custom that the creditor will claim such discounting charges from company. Now such payments is interest? If yes then whether TDS apllicable?
i have answer for your 1st question it will attract tds
Dear Sathyanarayan,
1) TDS will be attracted & threshold limit is 5,000
2) TDS will not be attracted in this case since it is a kind of reimbursement of expenses incurred by Creitor.
| Originally posted by : Amir | ||
 |
Dear Sathyanarayan, 1) TDS will be attracted & threshold limit is 5,000 2) TDS will not be attracted in this case since it is a kind of reimbursement of expenses incurred by Creitor. |
 |
Dear Sathyanarayan,
Brother these are Bank Charges/Discounting Charges & not "Interest".
Dear Amir
Thank for reply.
In case of LC bank is charging Usance Charges. Actually it is interest charged by party seperately mentioning as interest in seperate invoice. Whether such payment attract TDS.
Interactive Media Pvt Ltd.
New Delhi
CA Inter
View Details
Rohit KC Jain & Co
New Delhi
CA Inter
View Details
Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
View Details
CCI
Pro
CAclubindia
