Does Interest Paid to Creditors attract TDS.


(Guest)

Friends i have two question.

1.A Company Pays interest to creditors for belated payment. The interest paid is more than 10,000. Does the company need to deduct TDS?

2. A company give Letter of credit to a creditor for payment and the creditor discounts it with his bank. It is normal custom that the creditor will claim such discounting charges from company. Now such payments is interest? If yes then whether TDS apllicable?