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TDS

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This query is : Resolved

Shashikant (Querist)

21 January 2009 Dear Sir,

Is TDS is applicable or not to GovernmentBodies, if it is not applicable then which is document to be ask from them ? please give me your suggession.

Regards.
Shashikant

K V Subba Rao

K V Subba Rao (Expert)

21 January 2009 I find that there is no requirement to affect TDS u/s 194A from Interest paid to Bank, LIC, UTI, Partners (in a firm), Members by a Co-operative Society etc.

I haven't found similar provision for Sec 194C which you may be referring to but it appears to me that TDS provisions do not apply in case of payments made to Govt Bodies. I form this opinion based on clarifications in Cir No 715 dt 8th Aug 95 for payments to Doordarshan. Read the following extract

"...payments made directly to Doordarshan may not be subjected to tax deduction as Doordarshan, being a Government agency, is not liable to tax"

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