Please Help: TDS on Discounting Charges
Posted Date : 05-May-2011 , 03:29:41 am | Posted By Jarnail Singh
Is TDS is deductable on discounting charges paid to CANBANK Factors Ltd
Category : Income Tax | Answers : 3 | Comments : 1 | Hits : 812
Answers
Answer By: CA VIKAS JAIN
Answer By: Rishabh Upadhyay
yes
Answer By: Vaneet Gupta
Yes
Comments
CA. SANAT PYNE
06-May-2011 , 07:37:42 amDiscounting charges is in the nature of interest and therefore u/s 194A. All type of bank charges in connection with a loan or borrowing are categorised alongwith interest. You are not to deduct TDS U/s 194A for interest paid to bank. The definition of interest is in Chapter I (prelimnaries) Section 2 (Definitions) Clause No. (28A) interest means interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised ;]