Govt.Depts. who are depositing their surplus funds do not want any TDS to be deducted AS THEY DO NOT HAVE ANY PAN No.-THEY DON't HAVE ANY BECAUSE THEY ARE NOT ASSESSABLE TO TAX. tHIS IS the logic.
Is it acceptable.
Apart from the other provisions - Is there any provision which says that TDS should not be deducted from the deposits of those who are not assessable to tax like 
(including those exempted U/s 35, 35AB, 35AC(like CSIR), 35CCA(rural Devt.)
CAclubindia
