EASYOFFICE
EASYOFFICE
EASYOFFICE

Tds on bill discounting charges

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
08 May 2013 As a finance company, in their business of Bill discounting,making payment to the vendors for Rs. 98/- against bill of Rs. 100/- and collecting Rs. 100/- from the client.

Below is the scheme of entries in books of finance company:

Loan A/c (Asset) - Rs. 100/- Dr.
Bank A/c - Rs. 98/- Cr.
Upfront interest(income)- Rs. 2/- Cr.

Please advise whether vendor has to deduct TDS on discounting charges of Rs. 2/- or not.

Secondly, this is called interest of discounting charges income in books of lendor.
Profile Image

CMA Ramesh Krishnan

Profile Image

CMA Ramesh Krishnan (Expert)
26 August 2013 If charges paid to bank then no TDS
Profile Image

CMA Ramesh Krishnan

Profile Image

CMA Ramesh Krishnan (Expert)
26 August 2013 If charges paid to bank then no TDS
Upgrade to CAclubindia Pro. Subscribe Now!


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries


EasyOFFICE CCI Pro

Trending Online Classes

view all classess


Answer Query



Quick Links