Interest on dealer / customer deposits

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My compnay collected deposits from Dealers / Custoers as per the dealer agreement, and pays interest at the year end now, do we need to charge GST on the interest amount to be credited/ paid to the customer ? if so at what rate and the HSN/SAC code please?

 

Replies (3)

No tax is payable on interest received on refundable deposit.

Thanks for the quick answer!  further if I adjust  interest payable agsinst the customer receivables ? do I need to charge GST?

 

 

Yes you need to charge GST in such case


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