TDS for professional services

This query is : Resolved

indira (Querist)
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27 November 2008 Dear all,

One of the professional serivce renders to us does not want us to deduct TDS on payments. Is there a form through which she can ask us not to deduct TDS.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 November 2008 She has to file form 13 before her assessing officer seeking to get benefit of deduction of tax at source at NIL rate or at a rate lower than the prescribed rate. On production of a certificate issued by her assessing officer,in reply to form 13,you can act according to that. Pl refer rule 28 and 37 G of the income tax rules,1962 for further details if any.

indira

indira (Querist)
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27 November 2008 Thanks

Reetika Goel

Reetika Goel (Expert)
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27 November 2008 She can request her AO through Form-13 to give her certificate u/s 197 of the Income Tax Act, 1961.
Under Form-13, she will specify the receipts of last few years and the Income Tax paid for those year. As a result some %age will be worked out as an average and she can request the AO to allow her to get her TDS Deducted at that rate.

If AO is satisfied with the details provided he will issue a certificate u/s 197 specifying the clients whom a copy of it will be given for lower or Nil deduction of tax.