TDS on Interest to Airport Authority of India

This query is : Resolved

Sai krishna Medikonda (Querist)
Follow

23 May 2009
Sir,

We are constructing one building to Airport Authority of India(AAI). The AAI gave mobilization advance to us. Now we are paying interest on mobilization advance.

Noe the Query is whether I have to deduct TDS on interest to AAI.

As per the AAI, TDS need not be deducted

Please give me clarification whether the contention of AAI is correct or not.

If it is correct tell me the relevant section/notification i

Manikanta Raju CA,CWA,(CS)

Manikanta Raju CA,CWA,(CS) (Expert)
Follow

23 May 2009 Interest payable on mobolisation advances attracts provisions of SEC 194A, since the payee in your case is government authority there is no need to deduct TDS