cpc

applicability of tds


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

Please also refer section, rate of tds & decided case law

 
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ADVOCATE

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.

REPLY:

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.

 
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