23 December 2010
Good morning Sir, Kindly tell me that the payment made to BIS regarding testing & Analysis with renewal of licence, the payment is liable to deduct the tax at source? If yes then in which section & what is the rate of Interest & Penalty?
23 December 2010
Yes Tds is Laiable under section 194 J @10% w.e.f 01.07.2010 before that @10.30% on Testing and Analysis Charges with Renwal of Licence fee.
23 December 2010
Thank you Sir. But sir the Bureau Of Indian Standards is a government corporate body & TDS is not applicable to payment of govt. body. Please sir brefily discribe it. Thanks.
23 December 2014
BIS is covered u/s 10(23C)(iv) of the Income Tax Act, 1961.
However, that does not result in non deduction of TDS on its income for technical services provided. Accordingly, TDS has to be deducted on payments made to BIS for technical service provided to the assessee.
It is the duty of BIS to claim benefit of 10(23C)(iv) in its ITR and receive refund of Income tax directly from the authorities.
CAclubindia
