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Applicabilty of service tax on giving Rs.1Lakh as a sponsor

This query is : Resolved 

23 February 2009 Being a proprietorship firm , we are to pay Rs.1 lakh as a contribution to a medical seminar/ held last year .
Is there any need to deduct any form of tax ( service tax /income tax etc, ) prior to paying to the organisers. The conference has no regstartion under any tax authority. I am told that some companies have deducted a part of the committed funds and depositedwith Govt .
Please eductae me.

23 February 2009 TDS Provisions are applicable to a proprietorship if its liable for tax audit in the preceding year.
so if the indivual (proprietor) was liable for tax audit in the previous year, tax deduction is mandatory under 194-C(Contract).


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