Tds on interest paid to vendor for late payment of dues

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CA JAGADEESH

CA JAGADEESH (Querist)
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07 December 2012 If a vendor is charging interest on late payment what is the chargeabillity of tds in this case

@VaibhavJ

@VaibhavJ (Expert)
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07 December 2012 hi

TDS to be deducted u/s194A

Thanks//Vaibhav
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CA JAGADEESH

CA JAGADEESH (Querist)
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07 December 2012 But i came to know it was not chargeable to TDS please refer the below link

https://www.caclubindia.com/articles/tds-under-section-194a-15919.asp#.UMGhhoPFWjs

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@VaibhavJ

@VaibhavJ (Expert)
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07 December 2012 hi

Its been tribinual decision n not that of Supreme court, so be on safer side it is suggested to deduct TDS since word any debt incurres is exhaustive.

Thanks//Vaibhav

V K Bajaj

V K Bajaj (Expert)
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08 December 2012 Mr Jagdeesh!

Interest Amount part is not mentioned.

Still be secure and on safe side - deduct TDS.

Non-deduction may put you into querries and explanation.

@VaibhavJ

@VaibhavJ (Expert)
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08 December 2012 More clarity is expected in this budget & to avoid this you may seek an opinion of your tax auditots because they are going to authorise your books eventually.

thanks//vaibhav