This is a trasaction under LC.
As a purcher we bear the interest.
bank paid to our vendor after deduction of interest and the same interest our vendor charges us through the bill of exchange under LC transaction.
| Bill of Exchange | |
| Bill Amount | 450,000.00 |
| interest | 30,000.00 |
| Total | 480,000.00 |
The interest is the income of the bank, first the bank recover from our vendor and finally our vendor charges us the same amount under the LC. Payment /
Q- Tds applicable on the payment of interest under LC.?
My view >> as finally it is the income of Bank.and interest paid to any banking company to which banking requlation act.1949.applies is not subject to tax deduction.
CAclubindia
