17 January 2013
whether tds u/s 194c will be deducted on payment made to a payee having tax exemption u/s 11 nd 12 nd is there any recent circular on this above issue?
17 January 2013
Yes. TDS applicable on payment to payee having exemption 11 & 12 unless they specifically has the TDS exemption certificate, since the claiming section 11 & 12 certain conditions have to be fulfilled, payer cannot ensure that exemptions, so TDS apply
18 January 2013
TDS continues to be applicable. There are exceptions provided in CBDT circular for certain entities in whose case you can rely on the declaration given by the payee. in all other cases you will have to deduct
I am giving the circular no. for your reference which deals with incomes exempt u/s 10. This will help you understand why one cant suo motu give NIL TDS benefit to the payees
Circular 4/2002 dated 16.07.2002 available on www.incometaxindia.gov.in
CAclubindia
