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section 194J

07 May 2009

If a company pays Technical fees to Govt. institutions like The indian Institute of technology, Central Road Research Institute(CRRI), Jadavpur University etc. is it liable to deduct TDS u/s 194J on such payments.

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3 Replies

sandhya (ca) (92 Points)
Replied 07 May 2009

hi pinky there is no exemption to institutes like iit i guess tds has to be deducted

S.Anantharaghavan (Manager- Direct Taxation) (37 Points)
Replied 07 May 2009

Dear Pinkey,

Section 196 specifies that the following are exempt from TAX

1. payment to Central government

2. payment to RBI

3. to corporation established by or under central act

4. payment to mutual fund as specified under clause 23 D to section 10.

for all other payments one has to deduct tax unless other wise specifically provided or tax exemption certificate has been obtained under section 197.

Regards,

S.Anantharaghavan

Pinkey Chowbey (ca) (64 Points)
Replied 08 May 2009

Originally posted by :S.Anantharaghavan
"	Dear Pinkey, Section 196 specifies that the following are exempt from TAX 1. payment to Central government 2. payment to RBI 3. to corporation established by or under central act 4. payment to mutual fund as specified under clause 23 D to section 10. for all other payments one has to deduct tax unless other wise specifically provided or tax exemption certificate has been obtained under section 197. Regards, S.Anantharaghavan	"