Applicability of TDS on Payments to MSRTC for Bus Services

This query is : Resolved 

03 January 2026 We have taken public transport services (minimum 70 buses) from MSRTC. MSRTC has told us not to deduct TDS from payments. Is it exempt from TDS? Please share applicable Circular/Notification. Is this correct?

04 January 2026 In the absence of a specific statutory exemption notification, payments made to MSRTC for transport services are generally subject to TDS under Section 194C, provided threshold conditions are met. The fact that MSRTC is a government entity alone does not exempt the payer from TDS deduction.


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