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This query is : Resolved

Aamir Khan (Querist)

04 April 2015 Facts :-

There is a trust registered under u/s Sec.12A of IT Act.
The trust is a Temple.
Now,A piece of Land is being allotted by govt.
Trust is in the view to build an another temple over there (land
allotted by govt.)
For that the trust given a contarct to a party to make the temple and
use its own material and labour and whatver require to build a temple.
The Party aggreed.
Payment is in lumpsum.

Query :- At the time of payment to Party by trust, TDS is to be
deducted u/s 194C or not..??
if Yes then why..??
If No..why..??
Consequences of Non deduction of TDS..??
Any case laws..??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 April 2015 1. At the time of payment TDS has to be deducted.
2. It is legal compliance, non deduction will attract interest and penalty.
3. Normally all contractors agree for such deduction.
4. Already you are a 12A registered trust non deduction will be reported by your Auditor to Income tax authorities while filing the return.

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