Applicability of TDS to Railways

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09 February 2017 TDS on payment of licence fee to railways for tower space. Thank you.

darvin pipalia

darvin pipalia (Expert)
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09 February 2017 please elaborate your issue.

Guest

Guest (Querist)

09 February 2017 We are paying yearly licence fee to railways for the space occupied by our towers which is more than a crore. Do we required to deduct TDS under 194I

darvin pipalia

darvin pipalia (Expert)
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09 February 2017 as per explanation to section 194I "Explanation.—For the purposes of this section,— (i) "rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,— (a) land; or (b) building (including factory building); or (c) land appurtenant to a building (including factory building); or (d) machinery; or (e) plant; or (f) equipment; or (g) furniture; or (h) fittings, whether or not any or all of the above are owned by the payee;" so according to me if licence fee relates to any of the above ,tds will be applicable irrespective of the fact that payee i

darvin pipalia

darvin pipalia (Expert)
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09 February 2017 ....the payee is Indian railway.

Guest

Guest (Querist)

09 February 2017 The meaning of Government under section 196 of Income Tax does not include a PSU or a undertaking held by it wholly?

Guest

Guest (Querist)

09 February 2017 And is Indian Railways income is subject to Income Tax? for applicability of TDS Provisions at first?

darvin pipalia

darvin pipalia (Expert)
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09 February 2017 i think being statutory body Indian Railway is exempt from income tax.hence no need to dedeuct tds on payment made to Railway.