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Tds and st on payment of royalty to govt dept

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 December 2016 One of my client is paying royalty amounts as determined by the Department of Mines for use of certain natural resources.

Query is whether there needs to be TDS deducted and whether ST payable under RCM basis??

For all royalty payments tds us/s 194J would be applicable even though amount paid to government department ?

Experts please clarify the TDS and ST aspects. Thanks in advance.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
05 December 2016 No TDS applicable for any payment to Govt department
Service tax applicable on royalty payment under RCM, claim cenvat credit on it.
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Querist : Anonymous

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Querist : Anonymous (Querist)
05 December 2016 Can you please quote any law or rule for better understanding w.r.t TDS aspect?



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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
05 December 2016 Refer section 196 of IT Act.

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