QUERY:whether tds applies on the following:
1. repayment of loan to director
2. LC discounting charges
3. interest paid on loan taken from L&T Finance Ltd.
4. Interest paid on Hire purchase loan.
1. No. There is no income involved.It is only a case of repayment of the principal amount.
2.No. It is not commission/professional fees.
3. Yes. TDS deductible u/s 194A if the interest exceeds Rs 5,000 p.a, unless the recipient claims & proves that it is notified exempt from TDS.
4. Yes as in 3 above.