Tds deductions on payment to trusts

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This query is : Resolved

Shubham Shaily (Querist)
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11 June 2015 Dear Sir Payment has been made by a college to a hospital(registered under trust) for medical checkup of its students . Will TDS deduction u/s 194 J will be attracted in this case.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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11 June 2015 TDS to be deducted u/s 194J @ 10% if threshold limit of Rs 30000/- p.a. is crossed.

Rupesh Jain

Rupesh Jain (Expert)
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11 June 2015 yes tds will deducted u/s 194J if amount exceeds rs. 30000/- in year.

RahulMehta

RahulMehta (Expert)
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11 June 2015 As Income of Trusts registered under section 12AA are not non-taxable. They have just got some exemptions under 11 & 12 subject to 13.

So normal Tax deduction i.e. 10% under 194J if payment/bill amount exceeds 30000 in a year.

For non deduction of TDS, trust will have to obtain certificate under section 197 by furnishing form 13 to AO

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