Is Stipend at the time of Industrial Training liable to TDS

I think the stipend received at the time of Industrial Training is received after deduction when annual margin falls liable to TDS u/s 194C, in other cases, NO.

yes tds is to be deducted 

Then what about this case law and decision. Please find the attached file.

It is very simple if you apply the thought behind the basic taxability given in the law

(Act, 1961)

1. The reason for exemption was that the stipend was paid to meet the cost of books,

coaching fees, examination fees and so on. Simply say, in respect of the scholarships

granted to meet the cost of education.

2. Don't you agree, The sum received by way of stipend is a revenue receipt and so

chargeable to tax?

Under which head would it be taxable?

the answer lies in whether in the case of article training or industrial training, a

employer-employee relationship is created. In articleship, it is not but under industrial training, a very obvious, Yes.

3. In short, there is no specific exemption available for training allowance or stipend. It

would be taxable under the head "Salaries". Unless, you prove point (1) above.

But, I have heard companies at Bangalore and chennai payin Rs.15 to 2kk per month and not deducting TDS .

If his/her employment is as a consultant then his/her income would come under profits from business or profession. In this category, certain expenses incurred for the purpose of the profession can be deducted from the total  income and if the balance is more than the basic exemption , then only he/she will have to pay tax.

Stipend is taxable under Income from Salaries and tax is deductible u/s 192.

However, some enterprises deduct tax under 194J  also.