Tds

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Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2012 Can public limited company or any other person is liable to deducted TDS from the payment made to government company as a contractor ?.

CA CKP

CA CKP (Expert)
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18 May 2012 Yes TDS to be deducted for payment made to gov Company

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2012 Is there any exemption for tds deductions

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2012 Is there any exemption for tds deductions

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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27 July 2025 Here’s a clear answer to your query about TDS deduction when payment is made to a government company as a contractor:

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### 1. **Is TDS Deductible on Payments to Government Companies?**

* Yes, **TDS is deductible on payments made to government companies** for contracts or services.
* The payer (like a public limited company or any other person) is generally required to deduct TDS under the relevant section (usually **Section 194C** for contract payments).
* A government company is treated like any other company for TDS purposes.

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### 2. **Is There Any Exemption for TDS Deduction on Payments to Government Companies?**

* **No blanket exemption** exists specifically for payments to government companies under contract.
* However, some payments to government entities may be exempt if explicitly specified under the Income Tax Act or if the payment is of a nature exempt from TDS.
* Also, **Section 196** or **Section 197** may allow obtaining a certificate for lower or nil deduction of TDS if applicable.

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### 3. **Relevant Points**

* TDS on contract payments to government companies is **mandatory unless exempted**.
* Check if the government company falls under any specific exemptions (rare).
* Always verify if the payment qualifies for any specific TDS exemption.

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### Summary:

| Question | Answer |
| -------------------------------------------------------------- | -------------------------------------------- |
| Is TDS deductible on payment to government company contractor? | Yes, under Section 194C. |
| Is there an exemption for such TDS deduction? | No general exemption; verify specific cases. |

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If you want, I can help you find specific exemptions or rules based on the payment type or help draft formal communication for your clients about this. Would you like that?

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