26 January 2009
Commerical Paper are issued at Discount to the Face Value. Discount is basically the interest for the tenure of the instrument. Is TDS deductible on the same and is there any relevant circular for the same
26 January 2009
Mr.Hemant not clear on your reply. As CP will be issued by the borrower, at the time of redemption will TDS be applicable on the discount portion.
Can you also give reference to the relevant circular as well which states no TDS is applicable on discount
26 January 2009
Although exact circular is not immediately traceable, Commercial Paper has more or less the same features as that of Deep Discount Bond. So it appears to me that interest portion by whatever it is called is liable for TDS
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