Interest characterization in hire purchase: instalments are not interest, so withholding under section 194A does not apply. Payment of periodic instalments under a hire purchase contract does not constitute interest within sec.2(28A) because those amounts are composite payments ... Summary
Interest characterization in hire purchase: instalments are not interest, so withholding under section 194A does not apply.
Payment of periodic instalments under a hire purchase contract does not constitute interest within sec.2(28A) because those amounts are composite payments of hire and part of the purchase price, not payments for money borrowed; accordingly, the withholding provisions of section 194A do not apply to such transactions.
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