Friends,
Mine is a Govt. Department responsible for organizing arbitration proceedings. Firstly, the parties interesting in availing the services of arbitrator, are required to deposit the fees of the Arbitrator with the Department. After that, the arbitrators are appointed from the list of arbitrators available with the Department. After conclusion of the arbitration proceedings, the fees which was deposited by the parties is remitted to the appointed arbitrator.
The question is whether at the time of remitting the fees to the arbitrator, which was deposited by the parties, the Government Department should deduct tax at source, i.e., whether the fees to be paid to the arbitrator after deducting TDS only? Pls. remember that the fees is not being paid by the Government Department from its own funds. The Department is only remitting the amount which has been deposited by the parties. Pls. also tell relevant Section under which this case would be covered.
regards
manish
CAclubindia
