Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2014 A private company is making payment of storage charges to Central Warehouse Corporation which is a government undertaking. Should TDS deducted or not on such payment?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

26 April 2014 under which section is tds deducted?

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2014 Sir, Thats what i wish to know that if TDS is to be deducted then under which section?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

27 July 2025 Gotcha! Here’s the clear answer:

---

### TDS on Storage Charges paid to Central Warehousing Corporation (CWC)

* CWC is a **Government Undertaking**.
* Generally, **TDS is deductible on storage charges** under **Section 194C (Payments to contractors)** or **Section 194I (Rent/lease of land, building, etc.)** depending on the nature of the contract.
* Storage charges are usually treated as **payment for services** related to storage facility — so **Section 194C (Contractual payments)** is typically applicable.

---

### But — since CWC is a government entity:

* **Section 196 of the Income Tax Act provides exemption from TDS for payments to Government**.
* Hence, **no TDS needs to be deducted when paying to Central Warehousing Corporation**, as it is a Government entity.

---

### Summary:

| Payment To | TDS Deductible? | Section (If Applicable) | Remarks |
| ------------------------------- | --------------- | ----------------------- | ------------------------ |
| Central Warehousing Corporation | **No** | N/A | Exempt under Section 196 |

---

**So, you do NOT deduct TDS on storage charges paid to CWC.**

---

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Raviraj ponkshe

RAVINDRA JOSHI

AMAR MEHARWADE

Shailesh Prajapati

ARUN KUMAR & ASSOCIATES

Subscribe Now

Tds

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA