This discussion clarifies whether Tax Deducted at Source (TDS) applies to payments made to an Association of Persons (AOP) for organising employee events, such as an inter-company cricket competition. Generally, TDS is not applicable when payments are received from members of the AOP. However, if a similar event is organised by a private company, TDS would likely be applicable.
11 March 2024
State Chemical Industry Association (AOP under Income Tax Act) held Inter Company Cricket competition for Employees of Chemical & Pharma Companies in the state. It charges Rs.75000/- per company towards fees for tournament. Is TDS deductible.