10 July 2007
Sir, whether a firm can issue "deposits" ? If not, Whether it is possible to issue among the Partner's friends and relatives? if so, what is the TDS procedure? whether it come under 193 or 194A?
11 July 2007
A firm can procure money from Partner's friends and relatives but why to name it a "Deposit". Deposit is a term used by companies act...not applicable on firms.
In this case it is a simple loan and TDS would be attracted on interest paid to the depositors.