Usance interest for delayed payment to holding company liable to TDS

ACIT Vs M/s. Overseas Trading and Shipping Co. Pvt. Ltd. (ITAT Rajkot) Usance interest for delayed payment to holding company was interest u/s 2(28A) liable for TDS under section 195. Conclusion: Usance interest paid for the delayed payment to its holding company was not any part of purchase price of goods and was interest within the definition of term ‘interest’ under section 2(28A), therefore, assessee was liable to withhold tax under section 195 from said payment. Held: Assessee during the year had imported goods from its holding company mainly M/s. S Pvt. Ltd. but failed to make the pa...