Tds applicability on interest subvention

This query is : Resolved

Pranav Kumar (Querist)
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29 July 2011 Hi all,

Please guide me with regard to payment recieved by financer(NBFC) from manufacturer as interest subvention. Is it liable to TDS, if yes, under Section 194 C / H?

Thanks in advance.

CA Pranav Kumar

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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29 July 2011 What is interest subvention?

Pranav Kumar

Pranav Kumar (Querist)
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29 July 2011 Interest subvention is the interest subsidy passed on by manufacurer on behalf of consumer to financer.

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Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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29 July 2011 There is no such provision for TDS on interest subvention. If it is in nature of commission, then TDS will be deduted u/s 194H. 194C will never come in picture.