Is TDS Deductible on Interest for late payment to suppliers of materials u/s 194A?

Reply— As per decision of ITAT Ahmadabad in case of Income-tax Officer vs Parag mahasukhlal shah dated 30.06.2011, interest being received on delayed payment  on account of sale to customers has direct link and immediate nexus with the Trade liability, hence, did not fall within the category of "Interest" as defined in section 2(28A) of the Income-tax Act for the purpose of deduction of Tax at Source as prescribed under section 194A of the Act. 

Resultantly, assessee cannot be held a defaulter of non-deduction of tax at source under section 194A of the Act. 

As per the above decision we can conclude that TDS u/s 194A is not required to be deducted on interest for late payment made to suppliers.