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TDS applicability on payment to state government

Gautam (student) (92 Points)

19 December 2008

Please tell me " Is TDS provision of Royalty payment Sec.194J is applicable if payment is made to state government. IF 194J is noy applicable then please tell me the section which says it is not applicable or circular or case studt...///// send it to me my email id is grjuvekar @ yahoo.com

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8 Replies

praveen (Chartered Accountant) (6971 Points)
Replied 20 December 2008

As per RULE 6 DD if i am not wrong payment to central and state government is exempt from TDS provision.

Gautam (student) (92 Points)
Replied 20 December 2008

Friend ypu are saying it is about cash payment ,,, i am asking about TDS as it is written insec.196 as government no where it is specifically written as state government,..

BINOD KUMAR SARAIWALA (PRACTICING CHARTERED ACCOUNTAN) (30 Points)
Replied 24 December 2008

Please note that the Government is not an assessee at all . Whether the State or Central . AS per Section 17 of the Indian Penal Code (45 of 1860) "Government " denotes the Central Government or the Government of a State. there is no definition of Government in the Income TAx ACT. Hence we have to move to other ACT Applicable in India.

Gautam (student) (92 Points)
Replied 25 December 2008

Thnx.. Mr. Saraiwala

Shudhanshu Agrawal (Business) (2570 Points)
Replied 26 December 2008

According to me TDS is a centralized Taxand if we will deduct it on Central Government then we will ultimately deposite it to central government only....so there is no need to deduct TDS on central government whereas this is not the case with the State Government

If im wrong do intimate me

CA PARAS BAFNA (Practising CA ) (33423 Points)
Replied 17 May 2011

Please Refer Section 196.

TDS is not required to in case payment is made to the Government. Government includes State Government.

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chaithanya raju (Manager-F&A) (32 Points)
Replied 21 December 2011

Respected Sir,

I am requesting your valuble suggestion for " Whether the TDS provision 194J is applicable for payment made R&B (Roads & Building ) department for laboratory testing charges.

Kindly help me in this regard.

thanking you