Tax exemption for csr activity

This query is : Resolved

Tamal Kumar Sen (Querist)
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09 December 2011 A government company appoints a limited company which is into consultancy and training to undertake CSR related activities on its behalf. Please let me know whether tax is to be deducted at source while making payment to the consultancy firm which will undertake the CSR activity on behalf of the main company. Can the consultancy approach the Income Tax department for issue of no TDS certificate in this case. In case yes, what is the procedure for getting such certificate from the I. T. department.

anurag

anurag (Expert)
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09 December 2011 TDS has to be deducted.
Apply in form 13, but chances a less that the
AO will approve this.
Procedure:
new Rule 28AA and under sub-rule 2() provided following parameters under which Assessing officer can now decide about the application for issue of lower deduction of tax at source certificate . Read below
(2) The existing and estimated liability referred to in sub-rule (1) shall be determined by Assessing Officer after taking into consideration the following:-
(i) tax payable on estimated income of the previous year relevant to the assessment year;
(ii) tax payable on the assessed or returned income, as the case may be, of the last three previous years;
(iii) existing liability under the Income-tax Act, 1961 and Wealth-tax Act, 1957;
(iv) advance tax payment for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28;
(v) tax deducted at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28; and
(vi) tax collected at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28.

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