shubham jain (student) (26 Points)
15 December 2016
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 15 December 2016
No TDS is liable to be deducted in case of interest accurued due to trading liability
ITO vs. Parag Mahasukhlal Shah, the Hon’ble tribunal (Ahmedabad Bench) held that a payment which has direct nexus with the trading liability being connected with the delayed purchase payments will not be regarded as Interest as defined in Section 2(28A).[2011 (46) SOT 302]
Similar view has been taken by the Hon’ble Tribunal (Hyderabad Bench) in case of Sri Venkatesh Paper Agencies (Hyd.) Pvt. Ltd. vs. DCIT. [ITA No. 636 of 2011].
So it can be concluded that such interest doesn’t fall under section 194A and therefore no TDS is deductible under such a case.
Mukesh Kumar
(Accounts Manager)
(1466 Points)
Replied 15 December 2016
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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