https://www.taxtmi.com/article/detailed?id=1361 Whether discounting charges constitute interest depends on characterisation: immediate without recourse discounting where the financier acquires the bill on its own account results in the net payment being a sale price or discount, not interest; by contrast, if the bank acts merely as agent, the excess may be interest. Administrative rulings treat discounts on commercial paper and certificates of deposit as discount, not interest, and withholding obligations are not engaged where the recipient lacks taxable presence. en-us Wed, 20 Jul 2011 09:16:58 +0530 Wed, 20 Jul 2011 09:16:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1361 Whether discounting charges constitute interest depends on characterisation: immediate without recourse discounting where the financier acquires the bill on its own account results in the net payment being a sale price or discount, not interest; by contrast, if the bank acts merely as agent, the excess may be interest. Administrative rulings treat discounts on commercial paper and certificates of deposit as discount, not interest, and withholding obligations are not engaged where the recipient lacks taxable presence. Articles Income Tax Wed, 20 Jul 2011 09:16:58 +0530 https://www.taxtmi.com/article/detailed?id=1361