Tds require to be deduct or not

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jignesh r shah (Querist)

15 December 2013 tds u/s 194 c is required to be deduct or not while making payment by co to co-operative society for anual flat maintance charges

C.A. Mayur J. Raiyani

C.A. Mayur J. Raiyani (Expert)

15 December 2013 Yes, TDS is required to be deducted u/s 194C. exemption is there but it is for 194A interest other than interest on securities.

Nikhil Kaushik

Nikhil Kaushik (Expert)

15 December 2013 i Believe the annual maintenance charges paid to the cooperative society are for mutual benefits. So 194c should not trigger. The payment by the member of the society is governed by the principle of mutuality and the society does not derive any income.

Other experts may opine if any different view is there.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)

15 December 2013 Society is a group of persons called members.Maintenance Charges are not in the nature of a consideration or payment. These are in the nature of contribution. Any surplus/deficit is treated as the commmon
property/liability of all the members.
.
There is not a contract between the Society and Members like "one" will work for "other". It comes into extistence for handling the work of all on the
concept of mutuality and co-operation.
.
Further there is no specific indication under the law for TDS.
.
So, TDS is not required on Maintenance Charges.
.

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