Hey Everyone,
Can cash discount be covered under section 2(28)va[Defination of Interest] of the Income Tax Act?
Accordingly, should tax be deducted in such cash discount u/s 194A?
Supreme court has ruled that tax should not be deducted on discount paid to bank in bills discounting.(CargiCargill Global Trading (I) (P) Limited (ITA Nos. 331 & 204 of 2011) (SC) and Circular 65 of year 1971. Whereas it has left slightly unclear that whether TDS is not deductible on cash discount paid to costumers?
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