TDS For payment to NGO

Save Share

This query is : Resolved

Raghavendra Bhat (Querist)

23 July 2010 is tds appicable to payment to NGO's?
Contract payment u/s 194c
NGO is registered under 12A..........
if yes
at what rate??
plz ...

Gayathri Devi

Gayathri Devi (Expert)

24 July 2010 Under the Indian Income Tax Act, the following provisions relate to the Tax Deduction at Source from payments to Contractors and Subcontractors under section 194C.
Person responsible for paying any sum for carrying any work to any resident contractor should deduct tax at source.
ax should be deducted at source only if the contract is between the contractor and the Trust.
Hence TDS ia applicable.

Message likes : 1 times

Raghavendra Bhat

Raghavendra Bhat (Querist)

01 August 2010 hello madm
ur suggestion is absolutely right but my query is here
the contract was under taken by the Trust which is reg. under 12A....
then the payment making authority what to do???
amount may be more than 15lakhs

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

03 August 2010 Dear Raghavendra,

According to me the payment making authority not having any spefic exemption if the payment made to trust register under 12A then no TDS applicable,

Incase trust income is exempted based that you can get the TDS exemption certifcate also and produce to the payer

Raghavendra Bhat

Raghavendra Bhat (Querist)

10 August 2010 BUT IF WE DEDUCTED THEN THE NGO CAN REFUND IT NA?
SO.....

ANY WAY
THANKS FOR REPLY...

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now