hiiiiiiiiii all
i have a doubt on TDS that tds to be deducted or not in the following case.
MR A a seller has the termed & condition that if some one make late payment he will charge intrest @ 15 % on the amount, & our client has make him a late payment which has attract the intrest payment of RS. 15 lakh,
so my question is that wether he should deducted the TDS on intrest or not.
if yes under which section of IT act
Interest payments are liable for deduction of tax U/s.194A.
Regards/Dharmaraju
I am agree with Mr. Dharmaraju. TDS will be deducted u/s 194A.
Sure, interest payments are liable to TDS u/s 194A.
Definitely, TDS should be deducted
Sec 194A will attract for any interest payments
Dear pradeep & sudhirji,
We presume that ur client supplier (ie. Mr.A) is a resident in india. TDS u/s 194A will apply.
Alternatively section 195 will be applicable.
Regards
Kanti Jain
CAclubindia
