Tds exemption for rwa

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Akshat Bansal (Querist)

20 May 2016 My client is a RWA having income from both members and non-members. One of the member being a company deducts TDS on payment of Maintenance charges to RWA claiming that else their expense will be disallowed.
My query is since the maintenance charges received by RWA is exempt due to concept of Mutuality, how to apply for TDS exemption certificate from Income Tax Department to give to the company so that it stops deducting TDS.

Thanks in Advance.

Rupesh Jain

Rupesh Jain (Expert)

20 May 2016 its status under income tax will be AOP, like file his return and RWA normally no income due to they collect the amount from members and pay outsider agency for maintenance work .

Akshat Bansal

Akshat Bansal (Querist)

20 May 2016 Sir each time we file a return, there is a refund due to TDS and due to this the case is coming under scrutiny for every Assessment Year.
Is there any form by which we can claim TDS Exemption.

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)

21 May 2016 please approach your jurisdictional assessing officer with an application under section 197. if such certificate is granted stating that no TDS to be made by persons making payment to RWA, then your issue stands resolved.

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