TDS in interest

Hi, I am of the opinion that Yes , Tds is required to be deducted under the provision of section 194A i.e "interest other than interest on securities" , in case of individual or Huf  the turnover exceeds the limit specified under section 44AB

In that case, is there a circular specifically exempting power utility, gas-supply companies,etc. in Govt./public sector from such TDS on overdue interest recovered by them?

agreee with above

Originally posted by : K Venkatraman
	Is tax deductible at source on delayed payment interest charged by power utility companies, gas supply companies, etc. on their fortnightly/monthly bills raised on industrial/commercial consumers?

Dear Venkatraman,

Subsection 3 to section 194A deals with exemptions to interest payment without  TDS. Power utility and gas supply companies are not covered under any of the clauses to the said subsection. Therefore, TDS is to be made unless notification is issued by the central governement under clause (iii) f to subsection 3.
 

Vishwas | 95913 18000

Yes above Thread is Correct,

In case of Govt. we are not Deduct TDS

Thx

i think for tds is not required to be deducted for power companies as it is govt own.but for gas supply companies it is to be deducted .