Tds on reimbursment of interest

1. We generally pay to our supplier by way of Letter of Credit (LC).

2. Since LC is having due date 90-180 days supplier gets LCs discounted with banks for immediate payment.

3. Discounting bank deduct interest for 90-180 days (depending on LC duration) and pays balance amount to supplier.

4. Supplier claims back that interest (bills discounting charges) reimbursement from us through a debit note with supporting bank advice.

Whether is there any tds liability in above case

Replies (1)

NO NEED TO DEDUCT TDS..

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