TDS

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suman (Querist)

29 July 2010 WHEN A GOVG ORGNAISATION IS PAYING TO GOVG ORGNAISATION THAN WETHER PROVISION OF 194(C) IS APPLICABLE OR NOT? PLS REPLY SOON.

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)

29 July 2010 Sec 194C(1) states that "Any person responsible for paying any sum to any resident....."

So when a Govt. Organisation is apying to another Govt. organisation, provisions of Sec 194C will be applicable.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

29 July 2010 I have different view in this. If the govt paying to other than the Govt - TDS is applicable.if the Govt. paying to the Govt, tds will not applicable reasons

1. Govt payment TDS is not applicable

2. A person cannot deduct TDS income for himself. Since both are Govt. so no income and expenses concept

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)

29 July 2010 But the payee and the payer here are not Govts., but only Govt. organisations which can be PSU's, Nationalised Banks etc.

There is always a disntinction between a Govt. & a Govt. organisation.

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