we make late payment of our purchase bill . supplier raise debit note on us charging overdue or late payment interest. now is there any liability of me to deduct tds on interest amount
Replies (4)
Quick Summary
This discussion explores the tax implications of deducting TDS (Tax Deducted at Source) on interest charged for overdue payments. While one perspective suggests TDS under Section 194A is not applicable, referencing a specific case law, another supplier, a well-known MNC, insists on TDS deduction. The advice given is to consider deducting the TDS to avoid disputes, as it doesn't represent an additional cost to the payer, and to remember that GST, not TDS, typically applies to the supply of goods and services.