ONE COMPANY HAS TAKEN UNSECURED LOAN FROM INDIAN NBFC IN 2013. COMPANY IS PAYING INTEREST ON MONTHLY BASIS WHICH IS INCLUDED IN MONTHLY EMI. HOWEVER COMPANY IS DEDCUTING TDS U/S194 ON 31ST MARCH ON THE TOTAL AMOUNT OF INTEREST FOR THE WHOLE FINANCIAL YEAR. WHETHER THE POLICY OF THE COMPANY IS CORRECT? IF NOT, WHAT ARE THE CONSEQUENCES? KINDLY RESOLVE IT URGENTLY.
02 February 2015
As per the Law the Company must Deduct & Deposit TDS on Monthly Basis instead of Annual Basis. In the Present Case Interest @1.5% is chargeable along with TDS Amount.
CAclubindia
