banner_ad

Tds - sec 197

TDS 903 views 3 replies

Hi Everyone,

I have a query on Sec 197 - Certificate for deduction at a lower rate. Is the certificate which is issued to the deductee applicable only to the deductee?

Example:

1.A makes a payment to B after deducting TDS at the appropriate rates in force.

2. B obtains a certificate u/s 197 for deduction of no tax at source. Accordingly A will not deduct TDS if B furnishes the certificate.

3. Now, there is a third party C which comes into picture.

4. C makes a remittance to A and A makes the final remittance to B. Therefore A is only acting as an intermediary.

Query:

Is C liable to deduct TDS on payment to A  ?

Can C take shelter under the certificate u/s 197 issued to B and deduct no TDS while making payment to A ?

Whether A is required to obtain another certificate u/s 197 for the payments made by C to A?

 

I shall be thankful if you can respond at the earliest.

 

Thanks

Punit.

Replies (3)

 

1. Is C liable to deduct TDS on payment to A  ?

Yes. C is liable to deduct TDS on payment A (as commission) as part of intermediary

 

2. Can C take shelter under the certificate u/s 197 issued to B and deduct no TDS while making payment to A ?

No. C cannot take shelter under the certificate u/s 197 issued to B and deduct no TDS while making payment to A , becoz B party is not directly involving in transaction.

 

 

 

It's my opinion, wait for expert opinion by others

If A is making payment to B just on behalf of C, then its always advisable to give certificate to C also by B...The real question is the status/title of A.
Certificate u/s 197 is issued deductee wise only...


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details