Applicability of tds

HI

U/s194B definitely not to deduct TDS.

'For the purpose of section 194B, lottery includes winning from prizes awarded to any person by draw of lots or by chance or in any other manner whatsoever, under any scheme or arrangement. by whateveer name called.'

Hence, the essential elements to constitute a lottery is -

1) must involve a prize, whether cash or kind;

2)participants have paid or agreed to pay a valuable consideration for the privelage in participating in the scheme or arrangment.

3) Must involve an element of chance or drawing of lots 

Hence, any transcation involving specific skills for winning a prize or any advantage in the nature of prize cannot be termed as a lottery to attract provisions of sction 194B.

Accordingly,  prize given voluntarily  to the NGO based on their contribution to the society can be considered as a prize given by chance or upon draw of lots. It is specific to the skills of the NGO.

Hence, section 194B is not applicable here.