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
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
CAclubindia
