here we are not cheque discounting but bill discounting and as per latest judgement in case of of Kanha Vanaspati Ltd..v.Additional Commissioner of Income-tax, Range-50, New Delhi, it has been stated that TDS is applicable on bill discounting bcoz it is interest in indirect form it is different matter u called by whatever name either financial charge, bill discounting, service charge but it is eligible for tds u/s.194A
i am discounting my bill of Rs. 50,00,000/- thru a private party mr.A and he is deducting Rs.50,000/- as a bill discounting and send me a Cheque of Rs. 49,50,000/- should i require to deduct tax u/s. 194A on rs. 50,000/- whether it covers under definition of Interest ?
CAclubindia
