194 A treating as a interest. In our case we discounting bill thru private party but actulally we are paying interest in form of bill dicounting nodoubt the situation is differ as we are actually not paying interest but they(private party) direct deduct from our payment but it does not change the character of interest and so that liable u/s. 194 A. as per recent dicison of Kanhavanspati - delhi high court sir, we have read like this if any thing in form of interest by whatever named called either it is financial charges, bill discounting or any thing else it would be cover under section
CAclubindia
