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

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### 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.

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### 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.

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### Summary:

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

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

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