Tds on amount paid to iit madras

This query is : Resolved

Muralidharan (Querist)
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09 January 2014 9th January 2014
I Wish forum members a happy and prosperous new year.

My query is - A company has availed technical services from IIT, Madras (Indian Institute of Technology) and had paid Rs.35000/- for the services availed. Since IIT is wholly / substantially finance by the Central Government Section 10 (23C) of the Income Tax Act exempts such income from tax for IIT. In view of the above the company has not deducted any tax (TDS) at source from the amount paid to IIT. IIT has also submitted a letter to the company. The said letter was issued by Office of the Director of Income Tax (Exemptions).
My query is whether the above payment made to IIT is to be disclosed in the quarterly TDS return to be filed by the company.
If the answer to the above query is YES - then is it enough if the company mentions the Reference Number of the letter issued by the Office of the Director of Income Tax (Exemptions), in the TDS return in the Annexure Sheet.
with regards
R. Muralidharan

Nikhil Kaushik

Nikhil Kaushik (Expert)
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09 January 2014 Dear Muralidharan,

I dont see any need to show the same as the flags available for lower/no-deduction wont apply to this case...

You may very well though keep a copy of the DIT(exemptions) certificate that IIT gave to the company for future reference and as an evidence to back up your decision for no-deduction..

be assured that payments made to entities covered under 10(23c) have a blanket exemption from TDS.

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