Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Interest booked in nbfc

274 views

Save Share

suraj baliyan

student

37 Points Posted on 12 April 2023

If there is a listed NBFC borrow amount from other companies and in loan agreement it is mentioned that interest will be payable on half yearly or yearly but what will be the treatment on interest and TDS thereon in quarterly financial statements (in case of listed company)??

Replies (2)

Quick Summary

This discussion clarifies the accounting treatment and TDS implications for interest booked by listed NBFCs, particularly when interest is payable half-yearly or yearly. It highlights the need to disclose interest income in GSTR-1 and GSTR-3B based on the payment frequency. Furthermore, it confirms that booking interest income in financial statements triggers the obligation for Tax Deducted at Source (TDS) under the Income Tax Act.

CA Mayank A Jain

Chartered Accountant in Practice

1260 Points Posted on 12 April 2023

The interest income has to be disclosed in GSTR-1 and GSTR-3B based on whether the interest is payable half yearly or monthly.

Further, where the interest is booked in the financial statements, then the requirement to make tax deduction under source under Income Tax would arise.